Those ventures include Intelco, a new telecommunications company, belonging to a former People?s United Party politician, which may sell out by month?s end.

However, the Social Security issue is only one of the burning issues. Amandala understands that the group of Ministers think that, ?The Prime Minister does not understand the severity of the financial crisis.?

According to our sources, their gripes extend beyond the apparent misuse of Social Security funds, but extend to hikes in telephone and water rates, the high public debt, and Government?s insolvent development bank – the Development Finance Corporation. We understand that the Group of Seven are saying that it is over Government?s handling of these matters that they have resigned.

Amandala received a copy of the succinct but vague resignation letter addressed to Prime Minister, Hon. Said Musa, today, in which the seven Ministers?who together represent 23,000 voters?said that they were resigning ?in the best interest of the nation and the party?to allow you [the P.M.] the latitude to exercise your best judgment in the appointment of a new Cabinet.?

Deputy Prime Minister, Hon. Johnny Brice?o, Minister of Natural Resources, and the Environment, Commerce and Industry; Hon. Mark Espat, Economic Development, Investment, Tourism and Culture; Hon. Godfrey Smith, Foreign Affairs, Defence and National Emergency Management; Hon. Jose Coye, Works; Hon. Cordel Hyde, Housing and Transport; Hon. Servulo Baeza, Agriculture and Fisheries; and Senator Eamon Courtenay, Attorney General and Foreign Trade, signed the letter, dated August 16.

Notably, the Ministers had given the Prime Minister until the end of August to put in place a 9-point reform, which they had formally presented to him only last Thursday. Number one on the list was, ?That there would be change at the highest level of public sector financial management.? The group?s understanding was that the current Finance Minister, Hon. Ralph Fonseca, would be replaced.

On Thursday, after they negotiated with the Prime Minister for almost four hours on their demands, the group got the Prime Minister to publicly agree that he would make the 9 changes; however, the Prime Minister fell short of saying that he would fire Ralph.

Our reports are that the Ministers resigned today, after it became clear to them that the Prime Minister would not remove Ralph.

The people in political circles and the media are aware that all 8 other reform demands would not be possible if Fonseca remains in Cabinet, Amandala was told. Additionally, we were told that the Ministers resigned after ?they have given different branches of the [PUP] party free rein to attack us??

The resignations caused shockwaves to ripple through the country and left many in a state of both disbelief and sadness arising from the fact that, in the words of some observers, the Prime Minister chose Ralph over the seven.

?Clearly the Prime Minister prefers to have seven of his Cabinet Ministers resign than to answer the call or heed the cry for reform?? said Hon. Dean Barrow, the Leader of the Opposition, in offering his opinion on what transpired today.

?Politically it doesn?t make sense for him to pick one over seven. Remember the seven that have now gone represent the cream of the crop within the PUP? But the fact that he chose to do it the other way around is testament to the kind of relationship that exists between him and the Minister of Finance, and I believe that this is now proof positive that there is a great deal that unites them and people will draw their own conclusions as to exactly what it is that the Minister of Finance has over the Prime Minister so as to have the Prime Minister in this kind of hammerlock, so that the Prime Minister can do nothing to either discipline or discharge him.?

What happened that caused the seven to resign before the August 31 deadline? Amandala has received copies of signed statements from various branches of the People?s United Party (PUP), which together echo overwhelming support for Musa and Fonseca and their economic policies. Among those who endorsed the Prime Minister were 10 area representatives, including the nine backbenchers, who are now poised to take on the vacated ministerial positions.

The backbenchers include (1) Cayo Central?s Mario Castellanos; (2) Corozal North?s Valdemar Castillo; (3) Corozal South East?s Florencio Marin, Sr. (who had resigned from Cabinet about four years ago): (4) Belize Rural North?s Maxwell Samuels (who was at the forefront of the Immigration scandal); (5) Orange Walk Central?s Ismael Cal; (6) Toledo East?s Michael Espat: (7) Cayo North?s Ainslie Leslie: (8) Stann Creek West?s Rodwell Ferguson: and (9) Orange Walk East?s Dave Burgos.

Amandala understands that shortly after the Prime Minister received the resignations today, he called an emergency meeting with ?his key people? to reassemble his broken Cabinet.

At press time this evening, we had no official word from the Office of the Prime Minister on the make up of the new Cabinet. We understand that at about 8:00 tonight, the Cabinet Secretary, Robert Leslie: Belize?s Ambassador to Cuba, H.E. Assad Shoman: and Belize?s Ambassador to Mexico, H.E. Salvador Figueroa, wrapped up their session to help chart out the new Cabinet.

Earlier today, the Cabinet Secretary informed the media that the Prime Minister, in addition to being responsible for his Ministry of National Development, would be responsible for the vacated Ministries until a new Cabinet is installed.

The remaining Cabinet ministers are: (1) Hon. Francis Fonseca, Education, Youth and Sports; (2) Hon. Vildo Marin, Health and Communications; (3) Hon. Marcial Mes, Local Government and Labour; (4) Hon. Sylvia Flores, Human Development; (5) Hon. Said Musa, P.M. and National Development; and (6) Hon. Ralph Fonseca, Finance and Home Affairs.

The Ministers who resigned remain members of the House of Representatives, and we understand that they intend to continue to push their 9-point agenda in the House, where they will continue to represent the voters who elected them on March 5, 2003.

The message from the Ministers to the P.M., Amandala was told, is that ?2008 will be impossible without real economic reform.?

Barrow said that not only has Prime Minister Musa denied cries for full, independent inquiry, but he has also ignored the cries for redress from his own Ministers.

He further commented that, ?When more than half of the Cabinet resigns it seems to me that that makes your entire administration illegitimate. And so we clearly will and in fact do demand that the Prime Minister calls for elections??

As the numbers stand, however, the Musa/Fonseca administration still has majority support from the representatives in the House.

(We were unable to speak to the Prime Minister again today, and were told that he was in a meeting.)

(Reproduced from the Wednesday, August 18, 2004, issue # 1888 of Amandala)