U.D.P. leaks letter linking S.S.B./G.O.B./INTELCO
It might not have had the bombshell effect of a political press release just before elections, but documents released by the United Democratic Party this afternoon came very close. The opposition party says they now have proof that the Government of Belize and the Belize Social Security Board are the guarantors of telecommunications company Intelco?s debts–all fifty-one million U.S. dollars worth. And the evidence is a letter allegedly from Intelco?s chairman, Glen Godfrey to Ronald Sanders of Innovative Communication Corporation, which presently owns B.T.L, that itemizes loans from Intelco with several financial institutions including the Royal Merchant Bank of Trinidad, Provident Bank and Trust of Belize, the Social Security Board and the International Bank of Miami. Though unsigned, the U.D.P. believes the document to be authentic and based on its contents has issued an open condemnation of the government stating, “After taking Belizeans on a dizzyingly reckless and corrupt ride, in the name of competition, Government is now enshrining a new monopoly.” This afternoon, Opposition Leader Dean Barrow told News 5 that his findings have left no doubt in his mind that government has lied to the people.
Dean Barrow, Leader of Opposition
?Government and Social Security Board are exposed to Intelco; with respect to Intelco to the tune of fifty add million U.S. dollars. In other words, Government and Social Security will in the final analysis be the ones that will have to either suffer the losses or make good on the loans that are guaranteed. So the people of this country–the tax payers, the Social Security contributors are the ones who can ultimately bearing the final burden with respect to this Intelco debt.?
?All this has been done not just under a cloud of secrecy. But when the Government has been asked direct questions, it has always denied until the facts come to light and are so overwhelming and are so pressing that the Government is then forced to admit; as is the case with the nine point eight million U.S. dollar Social Security involvement with Intelco. So, it is not surprising that they will continue to deny. The contents of the letter are so very clear and I have no doubt that the Belizean people will know that this is what has been happening, this is what has been kept to them, the Government has been guilty not just of lying, but of a gross abuse of public funds and in particular Social Security money.?
?We do think Social Security money is really in jeopardy. It is clear that there is a pattern at work here that there has been a specific deliberate intervention on the part of Social Security, directed by Government with respect to Intelco. It is not just a case of a generalised Social Security investment in financial transactions, generally in this country involving as it were a huge swath of the private sector. No, these transactions of which the letter speaks make clear that Social Security directed by Government, put itself in a position to either lend directly to Intelco or to guarantee loans to Intelco, or to raise money for Intelco with Social Security bearing the ultimate risk bearing ultimate risk. That is not happenstance; that is not just part and parcel of a larger legitimate Social Security activity; that is specific, deliberate intervention on the part of Social Security with Government pulling the strings. It was done, we?ll repeat, in a way not only saw a lack of transparency, a lack of any information being passed to the public, but in fact in a way which saw Government and Social Security lying to conceal the true picture from the public.?
But, as expected, the picture from the Government is very different. Via telephone this afternoon, Minister of Finance Ralph Fonseca told News 5 that the contents of the U.D.P. release are “absolute nonsense”. Fonseca says his government flatly denies that G.O.B. and S.S.B. are guarantors of the fifty-one million U.S. dollars of Intelco debt. Fonseca contends that the government does have liability as far as Intelco is concerned with the International Bank of Miami for a ten million dollar loan made by the telecommunications company. As for the other loans, the Minister of Finance says, it was as late as last week that they were informed that a loan made by L.G.S., another Glen Godfrey company, was not being paid off. As to arrangements involving the Social Security Board, Fonseca told us that the S.S.B. securitized the mortgages held by several financial institutions, one of which, St. James Building Society, had issued loans to a number of Glen Godfrey companies, but not inclusive of Intelco. Fonseca says that the profits from those companies were then being used to conduct Intelco business. But the Minister maintains that S.S.B. will not lose any money and as a worse case scenario would have as an option foreclosure on those mortgages. Fonseca told News 5 he believes the entire matter will be resolved within three weeks, be it by involuntary bankruptcy or by the assumption of Intelco?s debts by a new owner. That scenario, which would be the death of any competition in the telecommunications sector, is quote ?the sad part?, according to Fonseca, who added it has been “a promise at a great expense”. Apparently, now government?s first priority is to make sure Social Security doesn?t lose any money, with competition now taking the back seat. As for the United Democratic Party, Fonseca says their acts are that of economic terrorism and what is expected of the Opposition. News 5?s calls to Glen Godfrey?s offices in Belize City were not returned.
