by Marco Lopez

BELMOPAN, Wed. June 7, 2023

On Monday, the Senate met to pass various significant pieces of legislation. The laws which were passed contained amendments to meet the recommendations of the Caribbean Financial Task Force. Two loans, totaling BZD $110 million, were also approved. Additionally, the Standing Orders of the Senate were amended to allow for the Women Parliamentarian Caucus, and the bill to reverse the increment freeze that had been imposed three years ago on teachers and public officers was finally passed. The Special Prosecutors Bill, however, which was drafted to make it possible for a special prosecutor to represent the state in the trial of former police corporal Elmer Nah for triple murder, was deferred after significant criticism related to its constitutionality.

Money Bills 

The Social Security Board (SSB) has approved a $20 million loan to the Development Finance Corporation (DFC) to help finance its ongoing mortgage pr
ogram. The loan’s purpose is to forward the government’s goal to improve and expand residential housing. The loan proceeds will be used by the DFC to also finance real estate development and infrastructure, and to refinance existing loans. The $20 million loan is to be repaid to the SSB within 25 years at an interest rate that is to be negotiated but that will not exceed 4.5%.  

During the Senate meeting, Opposition Senator Hon. Michael Peyrefitte questioned whether this loan facility was necessary. He argued that the government could have created budget allocations for the $20 million dollars over the next two to three years rather than borrow the funds, and he further suggested that the DFC is not a safe investment.

Senator Chris Coye, however, noted that the DFC has turned a profit in recent years, and that it has attracted investments from various international bodies. He highlighted the fact that the corporation won a regional award for its loan program geared toward women’s empowerment, and that it has programs which provide financing that bolster the sugar and tourism industries, the productive sector, and renewable energy initiatives.

A much more nuanced discussion occurred in the Senate, however, regarding the BZD$90 million loan granted to the government from the Kingdom of Saudi Arabia — with a mixed set of reactions being put forward by the Senate members, some of whom criticized the provision of the loan agreements, while others opted to support the idea of a new tertiary hospital in Belmopan. The loan — for an amount equivalent to roughly 168,750 Saudi Riyals — was granted from the Saudi Fund for Development (SFD) at a rock-bottom fixed interest rate of 2% and has a term of 20 years, with a 5-year grace period. But Senator Peyrefitte asserted that the oil-rich Saudi could have easily granted that sum rather than loaned it to the country — and classified the fact that the funds were borrowed instead of received as a gift as a failure on the part of the current administration.

“Why are we borrowing 45 million US dollars from the Saudi Government?” Peyrefitte questioned. “Madam President, the Leader of Government Business is a good friend with weh ih name – MBS – Mohammed bin Salman. Best of friends. This is the Crown Prince of Saudi Arabia, yo know? He buy wahn painting, wahn painting, fi bout 500,000 million US dollars, yo know; one painting, and we can’t squeeze 45 million US dollars off ah hihn?” Peyrefitte said.

He suggested that the amount being borrowed is a “drop in the bucket” for that country, and he suggested that the provisions of the loan largely benefit Saudi personnel. Specifically, he highlighted certain provisions that oblige GoB to contract Saudi experts, procure supplies from that country, and grant certain immunities to the government. Lead Government Senator, Hon. Eamon Courtenay, however, countered those assertions by noting that such provisions are commonplace in agreements for loans from international development banks which do business in Belize.

“Every development institution in Belize, from any and every country that makes loans available, says, one, give priority to the equipment and services available from my country,” Senator Courtenay said. “Senator Peyrefitte knows that, but he wants to pretend that something is wrong with this type of provision; every loan that we have brought here has similar type of provisions,” Courtenay outlined.

Senator Kevin Herrera, who represents the country’s business sector, and other senators representing the social partners expressed support for the notion of a tertiary care hospital being built on higher ground in Belmopan and away from Belize City. With the increased strength of hurricanes and storms, and Belize City’s location on the coast, a significant threat is posed to the safety of patients and staff at the Karl Heusner Memorial Hospital (the national referral hospital) during a storm, they noted.

“It had always worried me if there was a major hurricane, given Belize City’s position being below sea level and the way that hospital is built,” Senator Herrera pointed out. “It always worried me, given that it was the only public sector tertiary care institution in the country; and if there was a major disaster, where a hurricane came into Belize City such as Hattie, and the hospital would be submerged, I always wonder what would happen to the patients in that facility,” Herrera remarked..

The hospital is to be constructed on the University of Belize Belmopan campus and will serve as the first university hospital in Belize. Senator Coye, in his comments during the debate, further highlighted the fact that training medical personnel is a part of the healthcare plan of this administration.

“Not only are we importing that personnel, but we are importing healthcare services when our own population goes to Mexico or Guatemala for healthcare. So, what this project, the program affords us an opportunity to address those issues as well. As a university hospital, a medical program at the University of Belize will enable us to educate our own people so that we can provide medical services to ourselves,” Coye outlined.

These bills were both passed.

Bill to lift increment freeze passed

The Public Sector Emoluments and Allowance Reduction Act amendment was passed in the Senate. It adjusts the scheduled date for the ending of the austerity measures — which are being brought to an end one year before the originally stated date. Senator Elena Smith, the representative for the country’s labour unions, commented that they now await the reinstatement of the increments that had been frozen under the previous UDP administration.

“While we are quite grateful that this has come ahead of when it would have been expected to be completed, it said up to three years and we are here now before the three years, the only thing I want to add, Madam President, is just a reminder, that as unions as we continue to have our discussions on these matters, that the government side remembers that there is a promise,” Senator Smith said.

“In addition to the reinstatement of what has already been earned, we just want to remind the government side, the government team, that there are still continued negotiations on the fulfillment of us getting back those lost increments. As you all would know, the loss from the increments is far bigger than the loss from the 10% cut,” Smith further remarked.

This bill was also passed.  

Special Prosecution Bill unconstitutional

The proposed Special Prosecution Bill met much stiffer opposition in the Senate than the other laws that were discussed on Monday, however. What Senator Peyrefitte argued is that the bill would strip the constitutional power of the Director of Public Prosecutions, and would invest that authority in a politically appointed prosecutor — which could set the stage for political victimization. The bill was drafted following the New Year’s Eve triple murder of David, Jon, and Vivian Ramnarace for which former police corporal, Elmer Nah has been charged. Nah is the nephew of former head of the GI3 (previously named GSU) and the Commander Operations Strike Team, Marco Vidal, who is the estranged husband of the Director of Public Prosecution, Cheryl-Lynn Vidal.  

The bill was tabled to remove any appearance of bias in the prosecution for the triple murder given the proximity of the DPP to the accused. Peyrefitte pointed out, however, that the drafted legislation presents a clear breach of the principles of the separation of powers, giving the executive the authority to, in essence, create a new and widely powerful legal creature in the form of a Special Prosecutor.

Peyrefitte explained, “Why would we try to ask this Senate to pass a bill that gives us the power to investigate and prosecute? Come on, man; the arrogance must have a limit. That’s one instance or a case determined by the minister responsible for the administration of justice as requiring investigation due to a conflict of interest or partiality. The minister di decide who will be investigated and prosecuted. Nobody from the executive should be determining whether or not a person should be investigated and prosecuted for any possible crime; that is crazy. That is why we have a police department. That is why we have a constitutionally protected DPP for that purpose, for that the National Assembly people, mostly comprised of politicians, can stay out of the judicial system and judicial proceedings.”

Senator Courtenay called for an adjournment of the Senate after Senators Smith and Chanona echoed points made by Peyrefitte. He soon returned and said, “The government side has listened to the criticism of the Special Prosecutor Bill, and we intend to leave it in committee for the criticism to be brought to the attention of the Cabinet for further review and proposed amendment to the bill. It does not enjoy the confidence of the Senate today. “

More bills for FATF passed

Seven more bills to ensure that the country meets the recommendations of the Caribbean Financial Action Task Force (CFATF) during its upcoming assessment of the country’s implementation of measures to counter money laundering and financing of terrorism have been passed. In November 2013, the CFATF identified Belize “as a jurisdiction with strategic AML/CFT deficiencies that pose a risk to the international financial system.” The country was shortly after blacklisted and lost 80% of its correspondent banking relations. The government is trying to avoid any additional blacklisting, and has embarked on passing a slew of last-minute legislations to meet the requirements laid out by the task force.

During Monday’s Senate meeting, the Credit Union Act, Central Bank Act, Domestic Banks and Financial Institutions Act, International Banking Act, Money Lenders Act, Money Laundering and Terrorism (Prevention) Act, and the National Payment Systems Act were all passed. Only the Money Laundering and Terrorism (Prevention) Act, which, according to Senator Courtenay, has seen over 100 amendments, was passed with an amendment.  

Senator Peyrefitte pointed out that, while the passing of similar legislation is standard for countries who are seeking to get in line with international finance regulations, the Belizean business community must prepare for a new level of scrutiny that will be put into effect under these laws. He commented, “Belizean people, buckle up! Your privacy is gone!” Business Senator, Kevin Herrera also pointed out that, while he understands the need for the passing of the legislation, it seems that a “blank information check” has been given to the Central Bank to pry into businesses and their dealings.

“I wouldn’t like for this amendment to be weaponized against the citizens of Belize. We’ve seen it in the past, from a country standpoint, where Belize takes a certain position and then we are blacklisted for something in another area. I’m saying that can also occur to citizens, citizens taking various positions, exercising our constitutional and democratic rights, and then there is an investigation without any reasonable cause, and that part of it worries me,” Senator Herrera said.

Senator Coye pointed out that the protection already provided for within the Constitution will still apply to citizens.

“The question of privacy is impacted in this legislation, but it cannot impact it in any way more that would interfere with each of our constitutionally protected rights of privacy. So, there is at the underline basis, the constitutional entrenched protections, that remain in place, and those are the backstop against which any of these provisions are gauged against,” Coye said.

Lastly, there was an amendment to the Law Revision Act, which allows for the revision of portions of the laws to consolidate amendments outside the wider law revision process. Every 20 years or so, all the laws of the country are consolidated, but various amendments and changes to the law take place during this time. This necessitates several separate pieces of legislation being read together to determine the current state of certain laws.

This amendment will allow for an interim revision from time to time or as recommended to the Governor General.