Barrow drops a bomb on P.U.P., Novelo’s
About the only comfort Said Musa and the P.U.P. could take from today’s press conference by Dean Barrow was that it took place on Friday, a day when many Belizeans are more interested in happy hour than the evening news. And speaking of happy hour, that’s not a bad way to describe the mood of this afternoon’s presentation by the Leader of the U.D.P. News 5’s Janelle Chanona reports from the Radisson.
Dean Barrow, Leader of the Opposition
“This is more than troubling, this is dispiriting, it is discouraging, it’s disappointing”
Janelle Chanona, Reporting
Leader of the Opposition, Dean Barrow discussing a Pandora’s box of documents which he says proves that government and the Novelo’s Bus Lines agreed to an exclusive contract late last year and then lied about it.
First came copies of the contract, complete with the title: Exclusive and Concessionary license…the words: for a period of fifteen years and no license whatsoever shall be granted…to anyone other than the licensee…signed by Antonio Novelo for National Transport Services Limited and Minister of Transport Max Samuels; sealed by justices of the peace and witnesses and delivered on the eleventh of December.
And just when it looked like it couldn’t get any worse for the Government, which has emphatically denied the existence of the contract via a press release on Thursday and a paid ad on Friday, it did.
Dean Barrow
“We have also been able to procure copies of documents showing that on the seventh, from as early as the seventh of October 2002, the Belize City Council sold the pound yard compound to Antonio Novelo, who is of course one of the principals concerned. We have copies of the original transfer from the minister to City Council for five hundred dollars, that’s dated the sixteenth day of the sixth month, 2001 and then copy of transfer from the City Council to Antonio Novelo, dated seventh October 2002. The consideration being one million, two hundred thousand dollars, that’s the price for which the old Belize City pound yard compound was sold.”
And then came the clincher: a copy of a letter from the C.E.O. in the Ministry of Transport, Dr. Victor Gonzalez to the C.E.O. of the Development Finance Corporation, Troy Gabb. Barrow quoted directly from the correspondence.
Dean Barrow
“We hope that the above explanation will provide you the necessary assurance that the said exclusive license is part and parcel of the collateral forming the security for Novelo’s Ltd. indebtedness to the D.F.C. Should you, however, find that there is a need to amend the licence to clarify the matter further, we would be pleased to consider the same. Meanwhile, the ministry will ensure that no change is made to the license, which may in any way prejudice D.F.C.’s interest. Sincerely, Dr. Victor Gonzalez, chief executive officer. And this is cc to the honourable Ralph Fonseca-who else when things like this go down-Minister of Budget Management, and the Honourable Maxwell Samuels, Minister of Transport and Public Utilities.”
To add even more sauce to this stew, Barrow presented additional embarrassing information.
Dean Barrow
“When we continued to do our research, we found that the mortgage debenture, in respect of this loan made by the D.F.C. to the Novelos is dated the eleventh of April 2001. But well before that, on the twenty-third of May 2000, another mortgage had been recorded, this time by Atlantic Bank, using as collateral pretty much everything of asset owned by the Novelos. So that when D.F.C. loaned the thirty million dollars, it was virtually for all intents and purposes, for all practical purposes, an unsecured loan because the assets that they took as collateral had already been mortgaged to Atlantic Bank.”
“Now ladies and gentlemen, one final wrinkle. Remember that this thirty million dollar loan that D.F.C. gave to the Novelos formed a part of the mortgage pool that was used in the securitization programme, guaranteed by the government of Belize. So if foreclosure was to take place by Atlantic or Esso or Belize Bank or whoever, not only since the assets are charged first in point of time, certain it will be Atlantic Bank, not only would D.F.C. be left with no recourse and our thirty million dollars, because that’s tax payer’s money would have gone down the drain, the Government of Belize…because now the moment there if foreclosure, the Royal Merchant Bank of Trinidad, to whom the mortgage has been sold, would know that the company is in trouble, and therefore the collateral for the mortgage that they bought, the D.F.C. mortgage would be no good, would demand, as they are entitled to do under the arrangement with the Government of Belize, that government make good on the security, either by equivalent security, equivalent collateral of thirty million dollars, or by paying off the thirty million dollars, so you lose both ways.”
And then came the real excitement of the press conference, the sudden appearance of the Novelo brothers…David and Emil like surprise guests on the Jerry Springer Show.
Dean Barrow
“Well hold on, let’s get some order here sir, are you asking our permission to joint in the press conference?”
David Novelo
“If I may.”
Dean Barrow
“Then you may sir. You noh wah tek too long though.”
David Novelo, identifying himself as C.E.O. of Novelo’s Bus Line Limited, continued to deny any legal agreement between his family and the government for exclusive rights to national routes.
David Novelo
“There is no legal binding agreement. This is very important for me to explain to you all, and I would like to state the reasons why. Novelo’s Bus Line decided December sixteenth, to consolidate all of its existing companies into one identity, which is National Transportation Services Limited. We’ve been toying around with the idea of a national franchise. The reasons why is to consolidate all our routes.”
But Novelo didn’t get far.
David Novelo
“I would like to mention and this is…Leader of Opposition please.”
Dean Barrow
“We will give you another five minutes, after that, tell us whether in fact this document is valid and whether that’s not Antonio’s signature.”
David Novelo
“I would like to state, Leader of Opposition this is not a valid document.”
Dean Barrow
“But is it Tony’s signature?”
David Novelo
“It’s not a valid document.”
Dean Barrow
“But is it Tony’s signature?
David Novelo
“Anybody could have signed that signature Leader of Opposition. I would like to mention, if I may be granted…
Dough Singh, Chairman, U.D.P.
“Mr. Novelo would you mind…
David Novelo
“Mr. Singh, the country deserves to know, and I think the media wants to know.”
Dough Singh
“Mr. Novelo, there is an order and I…”
Audience Member
“Did Tony sign those documents?”
David Novelo
“No, there is no validity towards this document. The Leader of Opposition should know…
Audience Member
“So this is a fabricated document?”
David Novelo
“Yes…In order for you to have a legitimate franchise, it needs to be gazetted and it needs to be S.I.ed. Come on, this is not valid!”
Dough Singh
“Mr. Novelo, on this contract, is that your brother’s signature?”
David Novelo
“I am telling you, there is no validness towards this…
Dough Singh
“Is that your brother’s signature?”
David Novelo
“There is not validness and I would like to state this, I hope, and I did not come here to get in no verbal confrontation. I hope and I would like to request to the Leader of the Opposition that if this government, is this political party is to come in to power, I would like to state for all the investment that our company has at stake, and the thousands of employees that we have employed, that within reason we can establish a franchise. And secondly, which is very important, please…
Dough Singh
“Mr. Novelo, I think the fundamental question here is, is that your brother’s signature on this contract?”
David Novelo
“This is not a valid document, I don’t know how it came about…”
Dough Singh
“Is this your brother’s signature on the contract?”
David Novelo
“I don’t know how this came about. I am the C.E.O. of this company, and I would like to state…By conclusion, I would like to conclude, and this is very important, I would like to conclude by saying, there was proposals sent by Novelos company to the Ministry of Transport. I never did reach to the Prime Minister’s office; never did it get concreted through Cabinet. There is no truth, it is unfound, and I will and I would like to say that it is unfair for this party to try to link this company within political gainance.”
But whether there is any sort of legal loophole that the Government or Novelos can squeeze through, Barrow is confident that his case is a slam-dunk.
Dean Barrow
“There is no doubt that the government considered it a legal document, there is no doubt about that at all, that the Minister considered it legal, that his Chief Executive Officer considered it legal, that the Minister of Budget Management considered it legal. Whether in fact that turns out to be so is another issue, but you’re right, and that’s what I was saying earlier, that ought not to confuse the issue at all. Government acted in a way that it thought it was legal and government meant to give, and has as far as it is concerned, until it is challenged or set aside, has given an exclusive concessionary license to this company.”
Reporting for News 5, I am Janelle Chanona.
While the People’s United Party did not issue an official response to Barrow’s allegations, judging from an ad produced today for television, it appears that they will seek exculpation based on the same technicality presented by David Novelo: that since the new transport company did not legally exist when the contract with government was signed, then the document is legally invalid. Whether that argument will be upheld in the court of public opinion may not be known until March fifth.
