Last month we told you that the Social Security Board is proposing to lend 20.4 million dollars to a special purpose vehicle, Public Administration Campus I. It is a public private partnership that they will be entering into with the government which will see the construction of two office buildings adjacent to the Eleanor Hall structure. Once these buildings are constructed, they will be leased, and after 30 years be owned by the government.
But the UDP is sounding the alarm on this venture because they say the PUP is not to be trusted with SSB money - especially not a few months away from the municipal elections. Today they held a press conference with party executives to explain why they believe the Belizean people should not simply accept this loan proposal.
Shyne Barrow, Leader of the Opposition
"It is extremely troubling, disturbing, that we are seeing a replay of the People's United Party looting of the Social Security Board finances and it could not have been written, this is a nightmare from Briceno Street and the script could not have been written to be more frightening than it is now, because when you look at the players involved in the looting of the Social Security funds that belong to the Belizean people that should be there for the Belizean people when they retire so that they could have something. When you look at the players that were involved, it's the same names, none other than the CEO for the prime minister, Narda Garcia, was fired back in the Musa/Briceno administration I think in 2004 thereabouts. These same types of loans that we are seeing now, using the people's money to give to cronies and political hacks."
"And all of this five months before municipal elections. We have to call it for what it is. It is corruption, it is looting of the taxpayers dollars, in the context, in the backdrop of the highest inflation and cost of living that we have ever seen."
Beverly Williams, Second Deputy, UDP
"SSB they have taken out over the last two years, over 60 million dollars, it came out of Social Security for the airstrips, they're taking out 6.5 million dollars, that's money that can be had by COCESNA, that is free money so why touch the people's money? there are many more."
"$200,390 to Good Stay Hotel, $20 million to DFC, $23.8 million to Public Administration Campus, $6.5 to Airport Authority, $500,000 for painting the Supreme Court building, and they had proposed 7 million dollars for the Pharmacy Express, a total of 60 million dollars over two years, they continue to operate like the SSB is their personal wallet or their cheque book."
And one of the points emphasized by the UDP is the use of the special purpose vehicle. They believe that it has more than a hint of corruption, since the government could have gotten the loan directly from SSB, or a commercial bank, themselves. Here's how they explained it.
Shyne Barrow, Leader of the Opposition
"This private entity, why can't this private entity with $400,000 a month that they would be making in rental fees, why can't they go and get a loan from the commercial banks? If the government is going to do it, the government should do it. Don't try to disguise this corrupt undertaking in no PPP when the only person making that $100,000+ is the private entity. What is government getting out of that? The only thing government is going to be doing is going to pay rental fees, from my understanding. That is corruption."
"Please educate me Mr Prime Minister, are you saying that that $130 million will be paid back to SSB for the next 30 years? Is that how it's going to be? Or Campus I, and who is Campus I? Now if you're telling me that this investment made by the SSB will get a return for the next 30 years even after it is paid off, that it will continue to go into the SSB fund, then that's a great investment, that may be something that we can support."
"These loans, these facilities, have to make sense for the Belizean people, so when the government is borrowing, when the UDP borrowed they paid it back, you can't point to any of those loans that the government defaulted on."
Hugo Patt, Deputy Leader, UDP
"If you are going to be renting a building or having to pay $400,000 on a monthly basis, why is it then that you have to resort to a third party? If it is that you have an interest in building any particular building, why is it then, don't you as GOB can go to SSB, in our opinion it would be the best option. You borrow those monies, construct the building and then if GOB intends to rent, then you rent, but at the same time you pay to Social Security Board for a building that when you pay it off, eventually it will be yours."
And the UDP is calling on all Belizeans, social partners, unions, NGOs and the churches to join them in protesting this loan outside of the House Meeting that is slated for next week Friday. It will be starting at 10am and we'll be there to cover it.
