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Trial Over Smart Contract Continues
posted (January 24, 2022)
Last Friday, we told you about the opening arguments in the claim for judicial review, which UDP Senator Michael Peyrefitte has initiated against the Government of Belize. He is attempting to convince Justice Sonya Young to set aside a 3.37-million-dollar contract for software licensing which the Briceno Administration awarded to the telecoms company, SMART/Speednet Communications.

This contract is for the provision of Microsoft 365 software to the Government of Belize.

Peyrefitte, the claimant, in this case, has complained to the court that the Finance Ministry, which is headed by Prime Minister Briceno, entered into an improper contract with SMART.

Government's attorney has conceded that the Ministry violated the Finance Audit Reform Act when it failed to send the contract to the Contractor-General for review before entering into it. Additionally, Peyrefitte and his attorney Dean Barrow argue that this decision was tainted with bias and irrationality.

They point out that 2 members of the Prime Minister's family, are part-owners of SMART. They also insist particularly that the PM's Brother, Jaime Briceno, is the chairman of the Telecoms company.

Both the claimant and the National Trade Union Congress of Belize are pointing at the late stage of Smart's entry as one of the bidders in a selective tendering process by the Ministry of Finance.

Douglas Mendez, the Queens Council representing the Government, strongly resisted the arguments made by the claimant and one of the Interested Parties. He pointed out to the court that the ultimate decision-maker was Financial Secretary Joseph Waight and not the Prime Minister. He insisted that a proper assessment process was conducted, and the most important actors were the Fin Sec, the Finance Minister of State, and Ian Smith, the head of the Central Information Technology Office, which falls under the Prime Minister's Ministry.

Mendez submitted that a proper process was conducted, and not just because the PM is disqualified from making the decision, does it immediately taint the independent selection process. He contends that the decision was grounded in reasoning based on the selection of the lowest bid.

Part of the UDP's complaint of bias in the awarding of this contract involves comments Prime Minister Briceno made on Uncut when the PM revealed that his party owes his brother, Jaime, for financing the PUP during their many years in the political wilderness. Here's an excerpt of those comments from back in June and their context:

Jules Vasquez
"A huge differentiating factor between yourself as leader of the opposition in 2008 and the UDP in opposition in 2020/21, is that you had access to capital, because you were successful with your family businesses, you were able to finance the staying alive of the opposition right? Isn't that a problem you think for the UDP right now practically?"

Hon. John Briceno, Prime Minister
"It's a problem for any person that would lead, especially after a devastating defeat. The PUP had a devastating defeat in 2008, we lost badly and many people thought that it would have taken a long time for us to take off and so nobody wants to help and fortunately I have an immense debt to my brother, to Jaime who pretty much was financing us the party."

Jules Vasquez
"Hundreds of thousands of dollars, we reported on that. Its more than that and realistically neither Shyne Barrow nor Patrick Faber can put their hands on that kind of money."

Hon. John Briceno, Prime Minister
"Shyne Barrow said that he made a lot of money in his record business during his time as a rap artist, so probable he still has."

Jules Vasquez
"I don't think so, sir."

We understand that the judge has reserved her decision for February 18th, 2022. She will decide on whether or not the claimant has standing. If she decides that he doesn't then the case ends there. If she rules that Peyrefitte does have an arguable case, then she will peruse all the arguments and the submitted case law.

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