Photo: Michael Peyrefitte, former Attorney General

“Trash” – former AG Peyrefitte

We’ll “have it re-done” – PM Briceño

by Marco Lopez

BELIZE CITY, Mon. May 29, 2023

Both former Prime Minister Rt. Hon. Dean Barrow and former Attorney General Michael Peyrefitte, in separate interviews last week, have insisted that Erwin Contreras, former Minister of Investment, had no authority to sign the Definitive Agreement for Portico Enterprise Limited’s Port of Magical Belize. This action by Contreras has been deemed illegal, and it is noteworthy that the agreement was signed just five days before Parliament was dissolved on October 6, 2020, a month before the 2020 general elections, as the UDP was already facing internal issues. Section 33.1 of the agreement prohibited any public announcement without prior approval from the involved parties. UDP officials claim they had no knowledge of the document, and the current government had been silent on its existence until it was leaked last week.

Peyrefitte, who had previously been denied access to the document through a Freedom of Information Act request, believes that the PUP (People’s United Party) must have been aware of its existence. He stated, “I am saying that when Prime Minister Hon. John Briceño claimed he didn’t know about it, in my belief, he was lying … he had to have known about it. That’s my view.” Peyrefitte made these remarks during an interview last Friday.

On March 1, 2023, PM Briceño stated in an interview that he had not seen the document. At that time he said, “If the Definitive Agreement, which I have not seen, was signed by the responsible minister, then obviously it is binding because it is the Government of Belize that signed it.” Peyrefitte pointed out that such a state of affairs described by the PM would have been inconsistent with the modus operandi of the current PUP administration.

Peyrefitte questioned the sudden support by the PUP for a UDP document, asking, “Since when is the PUP so in love with a UDP document? Since when do they see nothing wrong? They claim their hands are tied. They can take away Boledo but not address this issue?”

When asked for one word to describe the agreement, he replied, “trash.” These development concessions listed in the Definitive Agreement give Port of Magical Belize significant leverage and financial room, as well as government support, to succeed in its venture—an inordinate amount of leverage and exemptions, Peyrefitte believes.

“The thoughts that I have, boy oh boy, I was wondering if it was real. You’re talking about the government – this government – went to Cabinet to ask Cabinet to ask Belizean taxpayers to approve, in the amount of hundreds of millions of dollars to build roads and infrastructure to accommodate a private enterprise. And these people are getting tax stabilization accommodations; in other words, if any taxes are passed that affect them, at the end of the year they calculate it and government has to give them back the money,” Peyrefitte outlined.

Reports indicate that Cabinet has rejected the document following strong opposition. One source claims that Minister of Tourism Hon. Anthony Mahler meticulously scrutinized and criticized the proposed bill and Definitive Agreement.

Deputy Prime Minister Hon. Cordel Hyde stated in a recent interview that there are mixed views on the legality of the document, and that such legality needs to be confirmed.

Senior Counsel and former Prime Minister Dean Barrow wasted no time in declaring the document, signed by a minister under his watch, as illegal. In an interview with 7News, Barrow expressed his initial reactions of dismay, shock, and disappointment. He admitted that Contreras had acted outside his jurisdiction by unilaterally signing the document. Barrow further stated that such a document should have been signed by the Minister of Finance, and any concessions offered to Portico could only be approved through an act of Parliament.

Barrow chose not to comment on whether he believed the actions were corrupt, but was clear in stating that the document was illegal. Both Barrow and Peyrefitte, who claim they had no knowledge of the document’s signing, assert that Portico’s principals were aware that Contreras lacked the authority to sign, and that final approval should have come from the Cabinet.

Nevertheless, Portico proceeded to sign the document and used its contents to secure Royal Caribbean International as a key partner, Peyrefitte suggests. He argues that Royal Caribbean, as a publicly traded company, is also complicit in the matter, as they failed to ensure the legitimacy and legality of the document and the business venture before getting involved.

Peyrefitte stated, “No stone should be left unturned to uncover why this happened, the way it happened. Erwin Contreras, Portico, and Royal Caribbean should all be investigated. A publicly traded company should know that before entering into an MOU with Portico, they need to ensure that any agreement Portico has with the government is legitimate.”

A press release purportedly issued by Portico last week claimed that the proposed cruise port development had signed an MOU with Royal Caribbean International, one of the world’s largest cruise lines.

The leaked Definitive Agreement has further heightened the intensity of public opinion surrounding the topic of cruise ports. The agreement prohibits any major development within a 25-mile radius of Portico’s cruise port, which includes Stake Bank and Waterloo’s proposed port at the Port of Belize, both of which are located within an 8-mile radius.

The government’s apparent support for this particular project, despite the explicitly illegal origins of the document which purportedly gives it legitimacy, raises questions. Peyrefitte demands that the PUP clarify their position and denounce the document.

In a recent interview, PM Briceño revealed that the original agreement will be discarded. He explained that the document will be revised and re-submitted to the Cabinet, ensuring that the development concessions for Port of Magical Belize are no different from those granted to Stake Bank and Harvest Caye.

“The paper came to Cabinet, and Minister of Tourism Hon. Anthony Mahler rightly raised some concerns. Other ministers also expressed their issues. After reviewing the raised concerns, I decided to withdraw the paper and have it re-done,” Prime Minister Briceño stated.

“Once we have finished revising the paper and present it to the National Assembly, it will be treated as its own legislation, just like what we did with Stake Bank and Harvest Caye. It will be neither better nor worse,” PM Briceño added.

He emphasized that what the UDP signed under the Definitive Agreement “will not fly,” and that the government will redo it. When asked about launching an investigation, PM Briceño stated, “Let me first settle the legislation that will grant the necessary development concessions to Port of Magical [Belize] or Portico. Once that is done, we will conduct any necessary investigations, including any corrupt acts under the previous government, and take appropriate action.”

He mentioned meeting with two vice presidents of Royal Caribbean, who expressed their approval of Port of Magical Belize as the best proposed cruise port project in Belize. However, there is no indication that the Definitive Agreement was discussed in these meetings.