London Court of Intl Arbitration rules in favour of Bze Bank

This past Monday, the Government of Belize trumpeted the news that the London Court of International Arbitration had ruled that a settlement agreement between the Belize Bank and the Government was void in respect of a UHS debt involving ten million dollars from Venezuela. That was big news but it is pales in comparison to today’s news. And that is because the same court has ordered the Government to pay BCB Holdings Limited and the Belize Bank Limited a forty four million dollar award. That’s right, the London Court of International Arbitration found that Government had violated a 2006 agreement in respect of how business and income tax should be assessed for the BCB Holdings and the Belize Bank. That contract was reached as part of a settlement of previous disputes and had been implemented by GOB and the Commissioner of Income Tax for two years but was discontinued by the Barrow Administration.

The forty four million dollar ruling was made this past Thursday in London and today, the both the BCB Holdings and the Belize Bank moved swiftly and filed proceedings in the Supreme Court here in Belize for recognition and enforcement of the multi million dollar award. On Monday, the Prime Minister praised the partial ruling made in its favour by the London Court. It will be interesting to see whether he embraces the most recent ruling as well. This is third major award made against to the government in the past year. Total awards against the Government now amount to an astounding ninety million dollars. The other two are in respect of cases by NEWCO for a concession agreement to operate the PGIA and the by Belize Telemedia for breaches of the Accommodation Agreement. This certainly calls in to question the Barrow Government’s decision not to participate in these Arbitration hearings.