G.O.B. denies bus contract; Barrow says Musa lies
It’s a controversy that threatens to be the spanner in the works of the People’s United Party’s high powered political campaign. Yesterday, the United Democratic Party emerged with allegations that government had granted a fifteen-year monopoly license on all major routes in the country to the Novelo’s bus company. The Prime Minister publicly denied the existence of such a contract and today, Acting Transport Commissioner Tirso Galvez, again claimed that no such agreement had been signed between G.O.B. and Novelo’s. To reinforce that position, this afternoon Belmopan issued a press release stating what they say are the facts, namely: “no exclusive license to Novelo’s or its subsidiary, National Transport Services Limited, is in existence.” The release goes on to say that government has maintained continued dialogue with the company and other transportation providers to ensure effective and efficient service to the public. The release ends by calling the U.D.P.’s allegations a desperate act. But today, Leader of the Opposition Dean Barrow stood his ground, going so far as to stake his reputation on the reality of the exclusive contract.
Dean Barrow, Leader of the Opposition
“Our sources, my sources, absolutely impeccable. I can say with absolute certainty and stake my entire political career and reputation on it, that contract does exist. That contract was signed by Maxwell Samuels and Antonio Novelo I think on the sixteenth of December. I’ll have to check the actual date, but as I’m saying, I’m prepared to risk everything on this. The Prime Minister, I’m sorry to say on national television, is a liar. That contract does exist.”
“How you going to tie yourself up by and large for twenty-five years. On the face of it, it doesn’t make sense, and naturally, I think people will feel that apart from being so obviously wrong, that there has to be all sorts of things going on in the background that can cause a government to take a step such as this at a time when national elections are imminent, running the risk of the disclosure, which has now taken place. The consideration for doing this must have been huge.”
“I have no problem with the Novelos. Antonio Novelo, who is I think the leader of the group, I consider a personal friend. But in terms of the public policy issues, how are you going to give this kind of a monopoly to a company that, it is public knowledge, is facing difficulties. What happened, as I understand it, and this is another wrinkle to the whole thing, that thirty million dollar loan that D.F.C. made turns out to be virtually unsecured. I think this is all part of the scramble to try and give the Novelos some sort of buoyancy. Because what is happening, as I understand it, is that the bank has been threatening, as have other creditors, to foreclose on Novelo’s. But the very asset that, if the bank foreclosed the bank would take, are the assets that supposedly are securing the D.F.C. loan. So the public money of thirty million dollars that is the loan that D.F.C. made, would just go down the drain, so that also adds sauce to the stew. But that sort of thing apart, for you to give an exclusive to a company that is having difficulties, it appears making ends meet from day to day, also raises a lot of questions. If the company does go belly-up, what happens then?”
News 5’s attempts to contact Antonio Novelo and his brothers proved fruitless as we were told they were in meetings all day. The company did issue a press release just before news time saying that, while discussions have been held and several scenarios put to paper, no binding agreement has been reached between his company and government.
