7 News Belize

Gov’t Declared Victory In Judgment That Was, At Best, a Split Decision
posted (March 11, 2022)
Last night, we took a closer look at the recent court battles between Former Prime Minister Dean Barrow and his successor, Prime Minister John Briceno. Back when Barrow was in office, and Briceno was Leader of Opposition, the PUP labored extensively to get a judgment from the Supreme Court that he and his government broke the law and spent 1.3 Billion dollars in public funds without prior parliamentary approval.

Well, now that Briceno is Prime Minister, Barrow and UDP's Michael Peyrefitte are watching his every move like a hawk.

And that's why they challenged the award of a 3.3-million-dollar contract to Smart, a company that is partially owned by the Prime Minister's family. The contract is for the provision of Microsoft 365 software to the Government of Belize.

Last week, both sides were claiming victory after receiving the ruling from the presiding judge. But, we've since gotten a copy of her written decisions, and tonight, we look at those findings in a pain-free treatment. Daniel Ortiz reports:

When it comes to the issue of actual bias, Prime Minister John Briceno is free and clear.

It is accepted that he wasn't personally involved in the decision where his Government awarded the contract to Speednet Communications.

Justice Sonya Young, after carefully reviewing the entire case, says, quote,
"The Court could find no evidence of actual bias on the part of the First Defendant. There is nothing that prohibits a family member of a Minister or even the Prime Minister from contracting with the Government... The Claimant has brought no evidence whatsoever which demonstrated that the First Defendant participated or acted as the decision-maker...

...The Court finds that the actual decision-makers were the Second Defendant and the Minister of State."

File: February 8, 2022
Hon. John. Briceno - Prime Minister/Defendant

"I had no knowledge of it, and that was said by everyone. You know they're just holding - because I am the minister of Finance, and that's fine."

The judge also thinks that a fair-minded observer would think favorably of the move by the new government to introduce competition in the procurement of these important services.

On that score, the judge thinks that such an observer would accept that, quote, "...competition is a pillar of public procurement. It ensures better prices and solutions. What had been done actually created increased competition in a process where the practice of using only a state-owned entity through direct public procurement is now reduced." End quote.

File: February 8, 2022
Hon. John Briceno

"It is the very first time in history that the Government of Belize has decided to put this out to bidding and that the company that gave the lowest bid managed to win that contract.. BTL being the national company of Belize does not give them the right to be able to have all the business from the government at whatever price. BTL has been creaming the Government... They need to be able to compete for services."

The Judge also finds no fault with the Financial Secretary, and by extension the Finance Ministry, for his direct involvement in the contract award.

She said, quote, "Even when heavily scrutinized, the Court could find no proof of actual bias against the Second Defendant either. His decision was based on the technical advice received following a tendering process and the directive given by the Minister of State. His recommendation to add Smart! to the pool only served to increase the competition. There is no evidence that Smart was unqualified, not capable, or unreliable, and not having the experience or track record of a competitor does not make it so. Smart! was the lowest bidder for the one year and the Second Defendant adequately rationalized the decision to accept only the one-year bids."

Again, that's another win for PM Briceno and his Administration.

File: February 8, 2022
Hon. John. Briceno

"The fact is that Speednet gave the cheapest rate. The fact is that this government is saving the Belizean people money."

But now, we turn to parts of the judgment where Senator Michael Peyrefitte's case was vindicated, and where the PM and his administration lost ground.

Simply put, his ministry failed to properly follow the law. The Contractor-General should have been allowed to review this contract award before it was executed. Not allowing this important oversight step is a breach of the Finance and Audit Reform Act.

But if you ask the PM it wasn't that a big deal in this instance.

Hon. John. Briceno
"The Contractor-General - after the fact - took a look at everything that took place, and he has given a stamp of approval, saying that everything done was open and transparent."

The Court says, however, that sending the contract to the Contractor-General after the fact, means that the defendants acted unlawfully and that the Finance and Audit Reform Act "has been breached which is a most serious matter."

On that issue, Justice Young says, quote, "The Court will not be seen to condone the behavior of this kind, particularly in the procurement process where the built-in safeguards are intended to ensure accountability, protect the fairness and transparency of the process and the proper award of contracts." End quote.

But, the judge stopped short of canceling the contract, which is what the claimant was seeking.

She said, "This breach is serious, but the section does not say it will invalidate the contract. Significantly, nowhere in the FARA does it say what will happen to a contract that is signed before it is or which is never submitted for scrutiny. The offender may suffer the peril of criminal prosecution, but what of the contract...

I am of the view that if Parliament intended that a contract which was not submitted to the Contractor General would be invalid it would have said so clearly... I am not convinced that a contract signed in breach of ...the FARA renders it invalid".

And acknowledging that Belizean taxpayers already paid almost 300 thousand dollars when GOB canceled the 3-month extension to BTL so that the contract could be executed, the judge did not want to add any more undue expense to the general public.

She said, "The taxpayers are the ones who will suffer most if this Contract is quashed as monies have already been paid out and services provided. How would the GOB recover those funds under such circumstances? The Digi cancellation of a three-month extension tells an impressive tale from which lessons ought to have been learned... I can not find any useful purpose which would be served by granting a quashing order. The Claimant's interest could be vindicated through a declaration and a purposeful cost order."

File: March 4, 2022
Hon. Michael Peyrefitte - Claimant

"The judge declared that their actions were illegal, and contrary to the law. I don't know how they can claim any victory to that. They also have to pay the full cost to the two attorneys representing me in the matter, because of their failure to follow the law. So, I can't see how they can claim that as some sort of victory."

Rt. Hon. Dean Barrow - Attorney for the Claimant
"Mr. Mendez for the Government had asked that we not get full costs, that perhaps the costs be halved, or reduced to an extent even greater than 50%. The judge rejected that. The judge said, giving us full costs, certified fit for a senior counsel and a junior counsel was a way of signaling the court's displeasure with the conduct of the Government."

Hon. Michael Peyrefitte
"I'm doing my job, Daniel. I'm a senator for the Opposition, and the health of a democracy depends on a strong Opposition. I will keep on being vigilant, looking at Government's actions, and if I have to bring 1 lawsuit a week, that's what I'll do. But, the government will be, at the very least, kept on its toes, and I pledge that."

On Tuesday, the United Democratic Party sent out a press release scolding the Government for claiming that they were the ones who won that case.

Their press release says, quote, "...Government claims Justice Young struck out an application for Judicial Review filed by Senator Michael Peyrefitte and the United Democratic Party and found that the... contract with Smart was "validly and rationally entered into." The truth is that our Claim succeeded. Justice Young, in fact, upheld our case and granted Judicial Review because she found the contract illegal. Thus, the Claimant was victorious and was awarded costs as the winning party... Judicial review of the contract was granted, the Court ordered that it be declared illegal and chastised the Government for that illegality." End quote.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize