Prime Minister of Belize Holds Business Forum Tackling Issues of Corruption, Crime, Citrus and Super Bond
Almost one year ago the Prime Minister, Dean Barrow held a business forum with the private sector to discuss partnering efforts with the government. At the same location at Old Belize, the PM met again today with the same group as furtherance to that discussion on the development of Belize’s economy. One of the itchy topics has been the super bond, which the government has been attempting to re-negotiate with the international lending partners.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“You know that on August 8, our liability management team published three options for sustainable debt exchange offer and these scenarios have formed the basis for negotiations with a creditor committee and with non-committee bond holders over the last ten weeks – nobody ever said it would be easy – the negotiations continue. I go up to Miami this weekend to meet with our advisors preparatory to a face to face meeting that they will then have with the people representing the creditor committee. So, the process is well in-train; I’m grateful for the expressions of support made by the BCCI and the EDC after they met with our team. Our team will re-engage with the business community and other leaders as soon as there is or is not final consensus on new terms for this debt. Also important in this connection is the fact of a special technical assistance program being conducted by the IMF at the Belize’s request; the intention is to bolster our debt management capacity and the experts from the funds’ capital market division is already in country to execute that mission simultaneously with the 2012 Article 4 review.”
The Prime Minister said that since last year’s forum, the reduction of electricity and water rates is the most notable development. Electricity rates were cut by six percent and water rates by 7.2 percent. But perhaps even more significant that that now, at least for people whose lives and business depend heavily on the use of the internet, is that we will soon have broader bandwidth access at much cheaper rates than what is currently charged.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“Yesterday, the BTL Board of Directors agreed that the company will once more give its internet customers increased bandwidth at reduced prices. Accordingly, the 128k internet speed will go from $49.00 per month to $25.00 per month; all other DSL internet speeds will double but for less than the current price. As examples: one megabyte which currently costs three hundred dollars will only sell for one hundred and forty dollars per month and two megabytes sold now for five hundred dollars will cost only two hundred and forty dollars so that going back to the one megabyte example – the customer currently pays three hundred dollars per month but that customer can now go up to two megabytes for two hundred and forty dollars for less than the three hundred dollars that he currently pays for one megabyte he can go to two megabytes. These reductions will take place later this month so that people can make their new arrangements and enjoy the reductions on the December bill. I want you to make the point that these developments are happening against the backdrop of the 4G roll out which will be fully operational next month, by the end of December.”
And crime, being what it is, described by the PM as quote, “the major domestic issue at this time”, Mr Barrow said that his government whatever it will take to wipe the violence off the city’s streets.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“We believe we have finally found a way to get the shooters off the street and into an institution thus together with our social partners and the citizenry, we will employ new means to lick this problem and in doing so we will utilize every resource, spend every dollar, pay every price until once and for all we get this thing under control and take our country back.”
Focus was also given to corruption in the public service, which has, time and again been brought to the fore on the talk shows and the news.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“We talked about the need to ensure that in trying to clean up that corruption, we eliminate the collusion on the part of the private sector with that corruption. I think when people visited with Miss Betty Ann Jones; she was able to show how in cases, with respect to refunds, an extra zero was added on to perhaps a ten thousand dollar refund with the obvious consequences. So, while we are clear on the remit for legitimate refunds to be disbursed as quickly as possible, recognize that with that as with so many other things in this world, there is a bit of HP – hanky panky, that takes place.”
Following his presentation, Prime Minister Barrow spoke with reporters. Returning to the crime issue, we asked the PM to elaborate for us on the way forward in dealing with that scourge.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“We believe that working together with the courts, we have a way of utilizing some little known laws that would allow us to take people off the streets and incarcerate them; not in the context of the normal criminal sentencing policies but in the context of provisions that allow for people to be put away in the context of their anti-social behavior. I’m sure, as I have said that in the fullness of time or rather very shortly, the Minister will speak in detail to you about that. That of course is going to be together with more money, as I said, being spent to operationally strengthen the police, more money for equipment, more money for better terms and conditions of service for the police officers and generally a huge financial push to ensure that we are properly outfitted, properly equipped to deal with the problem.”
Regarding the call by some sectors for the immediate resignation or removal of Minister of Foreign Affairs, Wilfred Elrington, for his approach to the Belize/Guatemala territorial dispute, and specifically since the OAS Secretary General, Jose Insulza’s statement that whatever grant made to the family of the Guatemalan farmer killed by the BDF on Belizean land will not be made by the OAS, Mr Barrow sais that it was not Mr Elrington but he that made that decision. The PM calls the gesture a humanitarian ex-gratia payment.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“It was a Cabinet decision, not to pay compensation – we don’t want to get into any kind of a word game; compensation is almost a term of art or certainly has a legal technical meaning – compensation is when you have to make amends for what you did wrong. As a matter of international diplomacy and in the interest, we thought of moving forward with Guatemala, Cabinet agreed on a humanitarian ex-gratia payment. That did not come from Minister Elrington, I was the one that put that to Cabinet and I stand by the decision to make a humanitarian ex-gratia payment.”
The citrus industry, also in a plight of its own recently, was also addressed in our conversation with the PM. That topic he referred to as a complex web of issues.
Rt. Hon. Dean Barrow
Prime Minister
Belize
“The headline-grabbing developments have to do, principally with the dispute between the CGA, as majority owners of CPBL, the processing plant and Banks Holdings, the minority owners; but minority owners that have operational control that have a veto power as a consequence agreement, an arm’s length agreement that those who were in control of CGA signed at the time. CGA is indicating that together with another foreign private sector investor, strategic partner it can raise money to buy out Banks Holdings shares. They need certain letters of comfort and assurance from Government; they need for us to do certain things to facilitate that borrowing and we will be very happy to do that. It is very obvious, without pointing fingers and without seeking to apportion blame that it is going to continue to prove impossible for CGA and Banks Holdings to work together. As long as those two remain the major players, the major owners of CPBL and are deadlocked – it’s a recipe for continuing chaos. I believe that it is absolutely accurate that Banks Holdings has said, ‘buy me out’ and I think that same investment agreement provides for the ability of one side to buy out the other. If the money is raised, if the new strategic partner comes in and Banks Holdings exits, clearly there will be a new relationship; there will be a new paradigm in the industry. CPBL will then not only be majority owned but will be operationally controlled by CGA and their new partner. The atmosphere which gave rise to this continuing deadlock and dispute would have been eliminated. There is of course, a subset of issues having to do with big-grower, small-grower tensions but I think those – the solutions to those will fall fairly naturally into place since CPBL is the only game in town with respect to processing.”
Prime Minister Dean Barrow.
LOVEFM