Senior Counsel Michael Young informed Amandala today, Friday, that the government’s appeal of the recent decision by Supreme Court Justice John Muria—declaring that the BCB Holdings and the Belize Bank are entitled to the final arbitration award of $43 million plus, granted by the London Court of Arbitration in August 2009—should be filed by Tuesday, January 4, 2011.
The Government considers Muria’s decision a crushing blow—but one that it is prepared to defend all the way to the Caribbean Court of Justice if it has to. Government will seek a stay of Muria’s decision, in order to block payment of the award, pending the outcome of the appeal.
In a press release issued earlier this week, BCB Holdings quoted its Chief Executive Officer, Lyndon Guiseppi, as saying: “We are very pleased that the Supreme Court confirmed the position we have always taken and has ruled that international arbitrations are binding on the Government and that they can be enforced in Belize.”
Prime Minister Dean Barrow had previously gone on record to say that the Government would not participate in arbitration tribunals for the agreements which he deems both immoral and illegal.
The BCB asserts, however, that, “The judgment means that the Government is legally obligated to pay this money to BCB Holdings Limited and the Belize Bank.”
The dispute is over a settlement deed with the bank dated March 22, 2005, and later amended, purportedly to settle a dispute over a share purchase deed and option deed for the repurchase of shares in Belize Telemedia Limited (formerly Belize Telecommunications Limited). The agreement centered on tax concessions to the bank.