Months ago, the Central Bank sent the Belize Bank directives to refund the US$10 million from the Venezuelan Housing Grant and to provide details on the US$10 million from the Taiwanese. That directive was challenged in the courts and at the Central Bank’s Board of Appeals but on Monday, the Central Bank stepped things up when it sent a letter saying that it would take all necessary steps to enforce its directives.
The Belize Bank brought in a small army of British attorneys to challenge that declaration and for most of yesterday they were in court before the Chief Justice asking him to force the Central Bank to back down. This morning the Chief Justice gave his decision and it was in favor of the Belize Bank. He told the Central Bank to put its enforcement on hold until it was determined whether the Board of Appeals was constitutionally appointed.
Michael Young for the Central Bank and Nigel Pleming for the Belize Bank discussed the outcome.
Michael Young, Attorney for the Central Bank
“The balance of convenience, determined as the courts saw it, is that the injunction would be issued against the Central Bank. So they need to stay their hand until the determination of the case.”
Nigel Pleming, Attorney for Belize Bank
“The only surprise is that the Central Bank didn’t give an assurance or an undertaking and it was then necessary to seek an injunction. That is a little surprising. But the judgement was very careful delivered with all the skill of the Chief Justice and we are very happy with it.”
So now the Central Bank is “stayed” from acting until the constitutionality of the composition of the Board of Appeals is determined at a hearing in mid July. Pleming told us that the Belize Bank feels the board is unconstitutional for a number of reasons.
Nigel Pleming,
“The concern is in the particular circumstances, there is just a question mark over independence and impartiality and it is a very detailed and complex argument but it relies on paragraphs and sections of the constitution. It is not an unfamiliar challenge to a board when you have slightly unusual circumstances in which they were appointed, bearing in mind that there was no appeals board at all when the decisions were made by the Central Bank.”
Michael Young,
“Off the cuff, it is not a position that I would say I agree with but really I reserve my final position and my final view for when I can properly look at the claim that the Belize Bank presents.”
Again, that hearing is set for mid July.
