7 Ministers tell Musa to dump Ralph
As allegations of scandal swirl around his government?s handling of the public purse and each day brings new criticism and demands for full disclosure of financial transactions, Prime Minister Said Musa today took to the airwaves to state his case. The address lasted just over three and a half minutes and we reproduce it in its entirety.
Said Musa, Prime Minister
?My fellow Belizeans, over the past two weeks, there has been much public discussion regarding the finances of the public sector. Much of this discussion has focused on the investments in the telecommunications sector and the risk exposure of funds of the Belize Social Security Board. Our government has also heard the clear calls for increased transparency and management reforms from the social partners, and the wider Belizean community. Today I met with members of my cabinet and we have agreed to pursue the following plan of action.
The board of directors of the Belize Social Security Board will, with immediate effect, refrain from making any new loans to the private sector.
A cabinet team, along with the appropriate public officers, will formulate and implement a short and medium term plan for the public sector, addressing the financial management process, debt management, cost savings and revenue generation.
As soon as possible, there will be full disclosure to cabinet and to the public of all public sector loans, loan guarantees and other financial arrangements and obligations for government and statutory boards.
There will be full and immediate disclosure of the actual budget outturn for the last fiscal year in order to make the appropriate adjustments to government finances.
A review of all capital two and capital three expenditures will be undertaken by cabinet and senior public officers, not for a freeze, but to prioritize projects for improved fiscal management.
Ultimate management of the financial public sector including the Social Security Board, D.F.C. and all statutory bodies will be the responsibility of the cabinet. We will afford the Central Bank full autonomy within Government.
Additionally, we will refocus and prioritize those manifesto promises rooted in social justice of the PUP government including job creation, access to education, housing and land.
We further recognize that the success of this plan is dependent on certain fundamental changes to the current approach and management of public sector finances. These changes will require restructuring at the highest levels of government. We will be disclosing the details of our plan of action and embarking on its implementation by month?s end.
The days ahead will be challenging. My government will discharge its obligation to lead Belize forward. Together with the continued support of the Belizean people we will successfully make the adjustments in the public sector finances and enable the private sector to continue to perform its rightful role as the economic engine and creator of jobs.
Let us move forward with the work of development in a climate of good governance, accountability, and social justice for all.?
The speech was as noteworthy for what it did not say as what it did say. Specifically, the Prime Minister did not announce the removal from cabinet of Finance Minister Ralph Fonseca. This had been a key demand of a group of cabinet ministers that met with the P.M. at eight thirty this morning. The six members: Minister of Works, Jose Coye, Attorney General Eamon Courtenay, Minister of Tourism Mark Espat, Minister of Housing Cordel Hyde, Minister of Foreign Affairs Godfrey Smith and Minister of Agriculture Servulo Baizar, along with support from Deputy Prime Minister Johnny Briceno who is out of the country, handed the P.M. an ultimatum regarding the management of public funds and alleged abuses by key members of their own government. That meeting lasted over three hours and before noon, the press was informed that the Prime Minister would be making a statement to the nation.
That statement, while devoid of facts and figures, made many promises; among them:
+ No new private sector loans
+ A team will formulate a financial management plan
+ Full disclosure of all public sector loans and guarantees
+ Publication of actual budget outturn
+ Prioritization of capital expenditure projects
+ Management of financial institutions collectively by cabinet
+ Autonomy for the Central Bank
and finally
+ “Restructuring at the highest levels of government” with implementation and details to be provided by “month?s end”.
This last item, according to sources in Belmopan, is the public version of a private promise by the Prime Minister that Minister of Finance Ralph Fonseca would be history by September first. Failing to keep that promise, it is alleged, will result in seven cabinet resignations. Who would take over the finance portfolio under that scenario is not clear, but vague descriptions include some sort of division of labour and management committee within the cabinet.
In politics, two and a half weeks can be a lifetime and if history is any guide, Ralph Fonseca will not go down without a hell of a fight. While the P.M.?s promise may be fresh in some minds today, there is no guarantee that if and when the INTELCO purchase is completed, Glenn Godfrey?s loans are off the books and a pile of political IOUs are called in, there may not be a Prime Ministerial change of heart. It?s at that time that a number of political futures will be determined.
For our part, we?ll try to remember the immortal words of a still anonymous personality who emerged in the middle of a famous scandal called Watergate. It was Deep Throat who said, “Follow the Money.”
