BELMOPAN, Fri. Sept. 28, 2018– The government is committed to pay NEWCO Limited six million US dollars in two installments of three million dollars each over a period beginning in the next 30 days when the first payment becomes due, and thereafter, on September 30, 2019, when the final payment is to be made.

The NEWCO Limited agreement was negotiated under the People’s United Party government, led by the two-term prime minister Said Musa, and it reportedly came to an end in 2003 when the company was unable to come up with investors to invest in the privatization of the Philip Goldson International Airport.

Following the termination of the agreement, however, NEWCO Limited took the matter to arbitration against the Government of Belize. The case was eventually settled in a US federal court for the District of Columbia, which ruled in NEWCO Limited’s favor.

The Barrow/Faber-led United Democratic Party (UDP) government has now agreed to find the funds to pay off the NEWCO award and this led to a bitter debate between area representatives of the PUP and the UDP at the House of Representatives meeting today, Friday, when the ratification motion was introduced by acting Prime Minister Patrick Faber, area representative for the Collet constituency.

Faber told the House that the court fine is “to be settled for 6 million United States dollars in 2 equal installments of 3 million US dollars each. The first installment is due on the 30th October 2018 and the second installment due on the 30th September 2019. Upon receipt of the 2 installments in full, each of the parties agrees to release the other party from any and all claims, liabilities, obligations, losses, actions or causes of action of any kind of nature whatsoever rising out of the relating of or relating to the concession agreement.”

Hon. John Briceño, leader of the Opposition People’s United Party and the Orange Walk Central area representative, asked why there is now haste on the part of the current administration to pass a bill to make the payments.

“Why has the government decided to bring this bill now? There was no urgency to pay it off. I remember the Prime Minister was saying in his last debate that they don’t have money. So why is it all of a sudden we are finding money to quickly settle this bill? The government even passed laws. You passed a law that would prevent companies like NEWCO to go after our assets outside of Belize. So again, it begs the question, why now? Is there something we don’t know? Who set up this deal?” Briceño asked.

The Belmopan area representative, Hon. John Saldivar, fired back.

“These people came into the country with a bonafide business plan … sold that plan to the government of the day and they signed a contract with these people for the management of the airport. But lo and behold, less than a year later, the People’s United Party government turned around and cancelled that contract to give it to the brother of the then Prime Minister of Belize and his friends,” Saldivar said.

Saldivar’s remarks were addressed by former Prime Minister Hon. Said Musa, PUP area representative for the Fort George constituency, who told the House, “The minister made a statement which is a total falsehood, an untruth that the PUP government gave this contract to the brother of the then Prime Minister. That is false, untrue, a lie!”

Saldivar, however, remarked, “This contract was cancelled and given to cronies of the People’s United Party and these people sued the government of Belize, all of that during the time of the People’s United Party administration. It was not until a few months after the UDP became the government that the award was made in favor of this company. The matter of the tax was a strategy on behalf of the government. Our government tried to see how we could minimize the amount that the government would have to pay”

Saldivar was taken to task by the PUP Cayo South area representative Hon. Julius Espat.

“The member from Belmopan, Madam Speaker, stood up proudly to explain to the Belizean people that government within the tax structure of our government under the attorney general’s ministry decided to go to court and commence proceeding against NEWCO for unpaid taxes. But he says it wasn’t true. It was done just as a negotiation tactic,” said Espat.

Saldivar chimed in: “Clarification. Never did I say that it wasn’t true. I said it was a strategy.”

“So Madam Speaker, are you telling me that this government can utilize that strategy against any Belizean investor or foreign investor when they want to get something out of you? Is that how you use the legal system? Is that how you use the tax structure so that you can intimidate and bully people into doing what you want?” Espat asked..

Espat told the House, “This government is paying Newco, in settlement of this claim, a total sum of over 40 million dollars when, if it had been settled in 2008 when the award was made, it would have only have had to pay a little over 3 million dollars.”

The PUP area representative for the Caribbean Shores constituency, Hon. Kareem Musa, joined the debate.

“I want any one of them on that side of the House to get up and tell this honorable House where it shows how much they have spent on legal fees in this case to date. Why are you hiding that from the Belizean people? Everything has a common theme, political mileage, more interest, more legal fees; you are at the end of the road,” Musa said.