The PUP have made it no secret that they do not support the construction of the Belize Civic Center, which is the most expensive public building in Belize’s history, at a total price tag of just under 33 million dollars. Well today, they sent out a release criticizing what they say is a violation of the Finance and Audit Reform Act because of the Center.
It is directly connected to the operational cost of running the facility. At the March 19 announcement of the new managers of the Civic, Christy Mastry, the General Manager of BIL, said that the Government was backing 1-year operation of the Civic with a total of $850,000 dollars. That's just in case Chad Eckert and Apex Belize is unable to generate enough revenue to cover the cost keeping the facility open.
For context, here’s how she explained it at the press conference which was held to announce that Apex would be the new managers of the Civic:
Christy Mastry - GM, Belize Infrastructure Limited
"There is a minimumguarantee based on their gross revenue that the company has to earn. That is basically what we would have said that is the government was running the facility itself for the year it what it would cost to run this facility. The beauty of a contract such as this is once they have made pass that gross revenue we no longer have to put a dollar into it. That gross revenue has now made the government revenue neutral on the facility every year for 3 years, that's the mark of success if they are making that, banking that, filling that pot to that number the project is successful as long as they are maintaining the facility. Over and above that there become a profit sharing mechanism."
Reporter
"So how much will the government be putting into the maintenance of this facility profit sharing aside on an annual basis?"
Christy Mastry
"It is actually what we are guaranteeing at this point in time is a total of 850,000 annually. Everything above that which the company believes they are sure they can make becomes a profit sharing mechanism.”
As you heard, Mastry describes the Government’s Plan B for Civic as a “guarantee”, and so, the PUP wrote to the Financial Secretary Joseph Waight to find out just what he knows about the arrangement.
Their press release from this evening says, “Today, the People’s United Party received confirmation from the Financial Secretary, Joseph Waight, that his office is not aware of any government guarantee to Apex Ltd… The Financial Secretary today via email confirmed that ‘with regard to the purported GOB Guarantee to Apex Belize Limited, after due inquiry, I am assured that there is no guarantee agreement between the GOB and Apex Belize Ltd’. The Financial Secretary further confirmed that he is not yet in possession of an executed copy of the said agreement that was signed on March 19th . “ End quote.
The PUP says that this that this concerns them because BIL is not a revenue earning body, and from their perspective, BIL is not in any position to affirm government guarantees. The Opposition also points that if this guarantee exists, it has not gone to the house for parliamentary approval.
The PUP release says quote, “Therefore, if the Deputy Prime Minister and the General Manager of BIL has signed a contract with APEX that gives APEX a government guarantee then this is illegal and in violation of the Finance and Audit Reform Act.” End quote.
They say that the Civic’s new Managing Director, Chad Eckert, is exposed with his pending litigation with the Belizean cotton businessman.
Their statement also says, quote, “The PUP calls on the Government of Belize and BIL’s Board of Directors to provide the copy of the management contract on the public/private partnership between Government and APEX and to also provide a copy of the due diligence report.”
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