_{Photo: Michael Feinstein}

NTUCB calls for reversal of GoB’s decision on Stake Bank land

BELIZE CITY, Thursday, September 26, 2024

The National Trade Union Congress of Belize (NTUCB) is convinced that the Government’s move to acquire the 24-acre extension of Stake Bank Island (currently in Michael Feinstein’s name) does not fit the bill of a compulsory acquisition for a public purpose. It therefore suggests other avenues including that, were the Government to insist in helping the creditors complete the Port Coral cruise terminal project, it should employ the Land Acquisition (Promoters) Act rather than the Land Acquisition (Public Purposes) Act.

The NTUCB wrote Prime Minister John Briceño a 5-page letter on September 18 suggesting the alternative options. The second one is for the Government to do nothing and let the parties resolve their issues in court. Otherwise, says the NTUCB, the Government stands to be exposed to “unnecessary, costly, and potentially embarrassing litigation, regardless of any indemnity to the Government.”

The NTUCB underscores that the Stake Bank project is aimed at serving commercial interests and is fully private. As an aside, it also details that the company itself is pending strike-off at the Belize Companies and Corporate Affairs Registry. According to the NTUCB, based on public admissions by Government officials, the true purpose of the acquisition is to avoid the dispute that resulted from the receivership due to a loan default. However, the NTUCB affirms that this does not constitute a public purpose. It writes, “This is irrespective of whether the dispute has brought the project at a standstill and the view that the project would be able to proceed after the acquisition.” At the same time, the Congress says the Government has no way of knowing if the project will be completed under the receivership or if they will simply liquidate assets.

The Congress rejects that the vital nature of cruise tourism to Belize and the lack of berthing facilities to accommodate large cruise ship arrivals, and the Government’s expected future benefit from a cruise ship port development fee, make the acquisition a public purpose. The NTUCB concludes that the acquisition is “being done to support a private enterprise on the basis that it may contribute, albeit indirectly, to national economic growth, as opposed to specific and tangible public benefits that should be associated with compulsory acquisition under the legislation.” They therefore deem the move unlawful.

Today, NTUCB Senator, Hon. Glenfield Dennison provided an explanation of the differences in the legislations. He shared, “Under the promoters legislation, it would vest the compulsorily acquired land in the private entity, but in the Public Purposes Acquisition Act it vests the interest in the Government …” He added that under the promoters legislation, a private individual can also acquire land once an inquiry determines there is sufficient grounds to take the issue to the National Assembly for a vote.

The six-week notice period for the Government to negotiate compensation with the landowner comes to an end on October 8. Thereafter, the Government can proceed to acquire the land. There has been talk of Feinstein seeking an injunction. In the letter, NTUCB President, Luis Luke Martinez asks the PM to answer 10 questions before the October 8 deadline if they will proceed with the acquisition to vest the property in Government’s name. Among them is, what are the specific and tangible public benefits of the acquisition, what parties signed the indemnity agreement (if one exists) to exempt the Government from any losses in the acquisition, the scope and extent of that indemnity, if mechanisms are in place to ensure the indemnitors will fulfil their financial obligations, and other related questions.

In his response on September 23, the Prime Minister does not fully answer the NTUCB’s questions regarding the indemnity. He only states, “To insulate taxpayers against potential compensation risk, Government has ensured that an enforceable, comprehensive indemnity is in place.” The PM adds that he must confine his responses to what was contained in their sole press release on the issue, given that the matter is live in court and “that the intended compulsory acquisition by the Government itself is the subject of legal proceedings.”

The PM reiterates that “Completing a berthing facility in the Belize District is uncontestably in the public interest …” He states further that the completion of the project is essential “to reverse the current decline of cruise tourism arrivals and restore beneficial economic activity related to this economic subsector …” The PM also informs that they sought advice both from the Attorney General’s Ministry and external counsel and decided that to wait out the years-long litigation “could well be fatal for the project …”

In trying to convince the Congress further about the public purpose of the acquisition, the Prime Minister states, “You would agree, I am certain, that any investment in the amount of almost 4% of current GDP demands judicious attention from Government. Failure of such a project has grave, long-term implications.” Briceno even goes so far as to suggest that because of the project’s development concessions that afforded tens of millions of dollars in tax benefits to Stake Bank, that “effectively makes the people of Belize a stakeholder in this endeavour. Protecting the people’s contribution by taking every step to assist in the Project’s completion and ultimate success, is the duty of any responsible Government.”

The NTUCB told us it has not formulated a response on the matter yet.

Feinstein prepared to sell for US50 million

In a letter from his attorneys to the Lands Commissioner and the Attorney General, Michael Feinstein informs that he is prepared to sell the 24-acre property to the Government for US$50 million wired to a foreign account. Apart from that hefty sum, there are 10 other conditionalities attached. One includes the payment to him of a US$1.50 head tax in perpetuity for all manifested passengers entering the Belize District starting one month after execution of the settlement deed. Additionally, he asks that Atlantic Bank Ltd. and Operaciones Portuarias discontinue all claims and arbitral proceedings against him. He also wants concessions for mixed development on North Drowned Caye (Ocean View Grand) and Blackbird Caye. There is also the request that all outstanding payables to Feinstein be paid immediately and that the security contract with Fort Point Security be continued or paid out. In turn, the Feinsteins say they would turn over their shares in SBEL to the Government or its designee and discontinue any claims regarding this issue.