The wiring instructions said plainly: “disburse only to the Government of Belize (for) construction and repair of houses,” but on the instructions of the Musa administration, the Belize Bank instead used the money to partially pay off Universal’s indebtedness. And now, the Central Bank of Belize is telling the bank, government wants its money back and quick. On Friday, Governor Sydney Campbell sent a letter to the Belize Bank on Friday ordering the bank to credit US$10 million to the account of the government of Belize forthwith.
A release from the Central Bank of Belize today confirms that there are two directives: the first requires the return of the US$10 million from Venezuela, and the second asks for full documentation on the 10 million us received from Taiwan. The release notes that if the bank fails to comply with a Central Bank directive, it is, “a criminal offence, apart from civil and other liabilities.” Strong talk, but observers say the Belize Bank may choose to pursue an injunction in the Supreme Court against the Central Bank.
And while that develops, we have also confirmed that Prime Minister Dean Barrow met with Belize Bank principal Michael Ashcroft on Saturday where he repeated his government’s position, that it must have a refund of the Venezuela money. Those close to the Prime Minister describe the meeting as “contentious” and “stormy.” And likely also a portent of grim days ahead – as the Belize Bank may now decide to re-activate arbitration proceedings against the government for the Universal indebtedness.
An evening release from the Belize Bank says that: “the Belize Bank….has already been advised that the two directives issued by the Central Bank are unlawful and void.”
