Fonseca says Godfrey guarantees not valid

On Thursday’s newscast, the Prime Minister was questioned about reports that multi-million dollar guarantees had been used to back at least three Glenn Godfrey companies, but the P.M.’s only reply was that he would be challenging those alleged agreements in court. Today a release from the Belize Press Office put forward Minister Ralph Fonseca’s reaction to the concerns raised about those very agreements. First off, Fonseca maintains that even though he was not Minister of Finance at the time, as Minister of Budget Management, he did have the authority to sign loan and guarantee agreements. Secondly, the minister maintains that Galleria Maya Limited, Northern Property Limited, and L.G.S. Services Limited were in the public interest and the so-called “put options” were intended to be temporary instruments to achieve certain economic and social objectives, namely a tourism project and the internet in schools initiative. And in expanding what the Prime Minister alluded to as legal challenges, Minister Fonseca contends that: “As far as the Government’s legal advisers are concerned, the “put option” agreements have long expired and are no longer valid as the options were not exercised by Provident Bank within the specified time. The Government’s advisers have steadfastly held to this position which has been conveyed to the Bank by the Ministry of Finance on more than one occasion. That continues to be the position today.”

The Galleria Maya project never did materialise, but Fonseca maintains that the road government built is being used. As for the internet schools programme, well that went offline when its implementer, Intelco–another Glenn Godfrey initiative–crashed and burned. Godfrey maintains that the idea failed because the Musa administration did not fulfil their obligation to ensure interconnection between his company and Belize Telecommunications Limited.