Case of Venezuelan millions takes another legal turn

Litigation involving the Belize Bank continued in the Supreme Court today before Chief Justice Abdulai Conteh. Through its attorney Nigel Pleming, the Bank filed what is being referred to as an anti-suit in response to the Government’s ongoing efforts to recover the ten million U.S. dollars sent from Venezuela. To put things in context, viewers will recall that in early May, the Attorney General successfully argued that the Belize Bank should be restrained from continuing in proceedings in the London Court of International Arbitration. But this morning Pleming renewed his client’s position that the injunction should be lifted because under the agreement the Belize Bank signed with the then Government of Said Musa in March 2007, “any dispute arising from or connecting to” the settlement deed of the Universal Health Services debt, especially regarding its “validity, existence or termination” must be ruled upon in arbitration. Pleming says as part of the settlement deed, the Government also promised that if they didn’t pay the thirty-three point five million dollars by September, default interest charges would kick in. When Belmopan didn’t cough up the cash, the Belize Bank went to Arbitration but the proceedings ended without a ruling because Pleming says the two parties were able to reach a compromise in the form of a verbal agreement in January of this year. At that point, Solicitor General Tanya Herwanger rose to address the court and maintained that despite several attempts, the Attorney General’s Ministry has been unable to find any evidence that speaks to that commitment. When he resumed the floor, Pleming promised to provide the court with any information in his client’s possession at the earliest convenience. But the British barrister maintains that in January the Belize Bank and the Government worked out a payment package, the centre of which were the twenty million U.S. dollars from Venezuela and Taiwan. As for Government’s attempts to have the Bank return the money, Pleming went on to tell the court that even if a ruling were to be made to deposit the Caracas cash in the Government’s account, the Belize Bank would then launch a legal campaign to recover the principal plus interest that it lent U.H.S. on the basis of a sovereign guarantee. That amount would apparently be in the neighbourhood of forty plus million dollars. The Government is represented in court by the Solicitor General with Michael Young in the second chair. Belmopan’s position is that the agreements and subsequent payments are unlawful because they breached the Constitution, the Finance and Audit Act as well as the terms agreed to between Belize and Venezuela. The case is scheduled to continue on Friday.

In related news, the case of the Association of Concerned Belizeans which questions the Constitutionality and validity of the settlement deed and loan note to Universal Health Services is also in court this week. Justice John Muria heard arguments on the claim but no ruling has been made in the matter.