Justice Shona Griffith handed down her decision in regards to a claim brought against the Government of Belize by the Belize Bank Limited. The case revolves around a handsome figure of 39 million dollars, a loan from the Belize Bank and the former Universal Health Services Limited. Back in September, the matter was heard in the London Court of International Arbitration which ruled in favor of the bank. Later on the claimants sought to have the arbitration award enforced in Belize through the Supreme Court. That matter ended this morning and Senior Counsel Denys Barrow who represented the Government of Belize, updated the media.
SENIOR COUNSEL DENYS BARROW
“The court said that the executive is basically always entitled to enter into agreements including loan agreements, the problem is that entering into an agreement, making an agreement and enforcing that agreement are two separate stages. It is therefore why the finance and audit reform act 2005 makes provision that there should be a resolution of the national assembly approving loans of a certain amount because implicit in that is that if the National Assembly which votes the payment of all monies approves the making of the agreement then it follows as a matter of course that the National Assembly must intend to approve the payment of the obligation which is incurred but if there has been no parliamentary approval but simply the making of the agreement by the executive by the government then the question of getting paid is a separate question and you cannot get paid unless the National Assembly approves the paying of the money. It was an ill advises or deficient approach that they took and the consequence is what we have now seen, if you do not get approval then unless you go back after and get approval for the payment you cannot pay out the money.”
Senior Counsel Eamon Courtenay and attorney Jose Alpuche represented the Belize Bank Limited. While Courtenay conceded that the Government has won round one of this legal war, he told the media that it does not mean that Government does not owe his client.
SENIOR COUNSEL EAMON COURTENAY
“From the Bank’s perspective two main planks of the government argument that there was bias on the tribunal, secondly that the bank was attempting to double recover was not accepted by the judge or to quote you, “torn apart by the judge” and so the judge’s judgment was a technical issue relating to section 114 of the constitution. This is not the place to argue it or reargue it. With respect we disagree with the judge but that is the nature of our business. We put our arguments, the other side puts its arguments, the judge analyses it and I have to say that Justice Griffith did a very detailed analysis of the argument and came down on the side of the government and I think you heard her specifically say that it tipped the balance so it was a very finely balanced argument. As I say, this matter is going to be finally resolved in the CCJ. To be frank, we remain confident of the argument that we have put and ultimately we will abide the decision of the courts at the highest level. So it is not that the court has found that the government doesn’t owe. An arbitral tribunal established that this money is owed by the Government of Belize. The sole question was a technical one; whether there was compliance with the constitution. At the end of the day I can tell you this, there is no court that has said that the loan note is unconstitutional or invalid. In fact you will recall at the privy council held that the loan note was not a violation of the section of the finance and audit reform act so I can expect that very shortly the Bank is going to institute another claim and we are going to sue on the loan note to recover the debt that is owed to the bank. The long and short of it is that the money is owed, interest is accruing. The longer the government takes in resisting and fighting in every inch and place that it can, the more the interest accumulates and ultimately the people of Belize will have to pay.”
Both legal parties are anticipating that this case will be appealed all the way to the Caribbean Court of Justice.
DENYS BARROW
“We have every confidence that this will go to the CCJ because I am sure that the Belize Bank will appeal and with respect, the judge gave a brilliant judgment. She analyzed and outlined to us all, the issues and it is a finely balanced question she held against the government on two aspects and held in our favor one aspect which was the decisive aspect but I think who ever won at the High Court, the Supreme court will appeal to the court of appeal and I think whatever the outcome at the court of appeal there will be a further appeal to the CCJ.”
EAMON COURTENAY
“If the government had lost they would have certainly appealed to the Court of Appeals so as you can expect we are going to appeal to the Court of Appeals and I am fairly certain in predicting that whoever loses in the Court of Appeal will go to the CCJ so from the perspective of the bank, we have the judgment. Government has won round 1 and it’s on to round two at the Court of Appeals so we will certainly appeal it and we know this matter will not be resolved until it gets to the CCJ so the quicker the better really.”
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