Barrow alleges impropriety in awarding oil contracts

The United Democratic Party held a press conference today, ostensibly the first in a series of media briefings to explain the party’s position on a variety of issues. This afternoon’s topic was crime and while U.D.P. Caribbean Shores standard bearer Carlos Perdomo gave a comprehensive presentation, the policy matters were upstaged by Party Leader Dean Barrow’s allegations of hanky panky in the petroleum industry. Essentially Barrow alleges that among the seven production sharing agreements announced last week by Minister of Natural Resources Florencio Marin, the terms of those given to two local companies covering blocks fifteen and sixteen were markedly more favourable to the holders than the rest. Those two companies, ZMT International and BCH International, are owned—at least in part—by Stann Creek based businessmen Tony Zabaneh and Mike Dunker. Barrow said that instead of awarding the exploration rights to Lagoon Resources, a U.S. based applicant that he said offered a better deal for government, former Minister of Natural Resources John Briceno gave the concessions to the local companies. In making his allegations, Barrow cited a letter to Prime Minister Said Musa from Lagoon Resources complaining of government’s unfair treatment and making charges of impropriety against Briceno, charges which Barrow declined to detail, but do appear in the letter released to the press.

This afternoon News Five contacted Dunker who told us that he and his partners, including veteran banana industry executive Zaid Flores, in addition to Zabaneh, had negotiated with government for a long time and that the terms of their contract, signed on July twenty-fourth, predate stiffer guidelines established with help from Commonwealth experts. According to Dunker, that would explain why their terms are less favourable to government than those announced by Minister Marin. News Five also contacted John Briceno who explained that all negotiations with petroleum concession applicants are conducted by government’s technical experts, whose recommendations must go to Cabinet for approval. Briceno denied any allegations by Barrow or Lagoon Resources of irregularities in the awarding of production sharing agreements while he was minister. Meanwhile, with regard to the crime issue, Barrow acknowledged that it would not be illogical to assume that Perdomo, if elected as part of a U.D.P. government, would be a natural choice as Minister of Home Affairs.