Banking laws keep U.H.S. guarantee secret

For the last two weeks, the local talk show circuit has been abuzz regarding the Government’s guarantee to Universal Health Services multi-million dollar debt. Much of the discussion has involved the integrity of the guarantee itself as initially the confusion centred on its very existence. Government officials have now attested to its presence in the files of the Ministry of Finance, but that’s apparently where it will stay. Via telephone this morning Prime Minister Said Musa informed News Five that requests for disclosure of the contents of the guarantee have to be denied based on confidentiality for banking documents. The P.M. went on to assert that in December 2004, Belmopan did in fact guarantee Universal’s debt at the Belize Bank. Musa maintains that without consent from the shareholders of Universal or the Belize Bank, under the law, government is not able to release the details. That position has hit a sour note with the public, most of who argue that since taxpayer money will be used to pay off the debt, the public has a vested interest in the contents of the guarantee. At least one entity, the Association of Concerned Belizeans, has petitioned for the document’s release under the Freedom of Information Act. After Government told them no, A.C.B. member and attorney Lois Young Barrow asked Ombudsman PaulRodriguez for disclosure. Rodriguez reviewed the paperwork, but in the end also refused to release the agreement by citing confidentiality. And while the guarantee is for now a state secret, what we do know that is the Universal debt stands at just under thirty three million dollars. We understand that the interest at the Belize Bank on the loan have been frozen retroactive to February of this year. The Musa administration attempted to settle the liability with approximately eight thousand acres of land on Ambergris Caye but the PM says in the end that effort failed because “the bank was asking for too much land, including part of the reserve.” Belmopan is now trying to find a new way to appease Belize Bank, but the P.M. says that because negotiations are still ongoing he cannot disclose what the new offer to Lord Michael Ashcroft is at this time. In addition to its debt at the Belize Bank, Universal Health Services also owes the Development Finance Corporation and several other creditors. Shareholders of U.H.S. include Dr. Antanasico Cobb, Dr. Victor Lizarraga and businessman Luke Espat.