Briceno’s Administration Moves to Acquire Stake Bank Extension

Prime Minister John Briceno returned home yesterday from his working visit to Guatemala.  Today, he was at an event at the Belize Coast Guard where he granted the media an interview on the Feinstein land surrounding Stake Bank and the government’s compulsory acquisition.  What the Briceno administration seeks to do is to compulsorily acquire the disputed 24-acre extension of Stake Bank.  In that vein, the Commissioner of Lands, Talbert Brackett has written to former Stake Bank Chairman and shareholder Michael Feinstein informing him of the government’s intent to acquire the land for public purpose. According to the Prime Minister, it was not an overnight decision, but that there was a due process adhered to.

John Briceño, Prime Minister of Belize: “On the Stake Bank land, as you all know, there’s a legislation that was passed by the UDP whereby we deemed this project of national importance and now that it seems that between the different investors they have been having issues, that project has been at a standstill. We have I think approximately $270 million. But because there’s a dispute with the land, that project cannot be finished and if you look at the numbers for the cruise lines that they’re going down we need to be able to finish that project. We believe that as a government what we did is first we put the first notice of acquisition. What does that trigger? It triggers then the owner to come to government and to say okay this is my land and then negotiate a price. If a price, a suitable price cannot be worked out then we go to the second stage when there is compulsory, compulsorily acquired and then the courts take over after that. So it’s a simple issue.”

Reporter:  In this case this is the expansion. So what becomes of the other parts of the property? What’s the agreement there moving forward? 

John Briceño, Prime Minister of Belize: “Well, the problem is not with the center part. The problem is the area that was dredged around the island with only a 200 meter opening for the land. And if we want to finish that project, then that land is essential as it is right now because no work is taking place. I’m told that probably as much as five acres have already been washed away so we really need to move with a sense of urgency.”

Reporter: How much will this cost tax payers?  

John Briceño, Prime Minister of Belize: “It will cost, because we had not one single cent. And why do we say that? When that was brought up to the cabinet, the cabinet then said the only way we would consider this is if there is an indemnity agreement, an indemnity that when this is settled by the courts, if we go to the courts then the investors they are the ones that is going to be responsible to pay for that. And also apart from them just signing an indemnity we also have the financial backing a deposit in the government’s account as a down payment plus also from another financial institution that will be responsible for the payment. So there’s nothing much more to add to it.”

Late this evening, the Feinstein Group issued a release saying that the government’s reasoning is merely a ruse and that the group may be seeking legal recourse.  The group says the decision came on the heels of a recent private meeting between one of the Honduran businessmen and Prime Minister John Briceno. Feinstein says it has consulted with its legal advisors, Marine Parade Chambers LLP, who have advised that the High Court is likely to declare the acquisition as lacking any legitimate public purpose, its true purpose being to satisfy the specific and immediate interests of the Honduran businessmen. In the statement, the group dubbed the move as being a high-handed interference in a private sector dispute live before the High Court and called it unfair and improper. According to Feinstein, GOB is siding with Honduran businessmen of questionable business practices. The company raises several concerns with the first being that Atlantic International Bank Ltd was forced to pay US $23 million to settle Federal Trade Commission charges for its involvement in the massive Sanctuary Bay land fraud and went into receivership. Feinstein also says “the government claims the acquisition is in the public interest yet purposely undermined the Stake Bank project by senior Cabinet ministers supporting a competitor, Port of Magical Belize, which turned out to be a spectacular fiasco, but cost the Group heavily in court battles.” Additionally, the release says that the government now has other options since it acquired the Port of Belize this year. Lastly, Feinstein added that it puts on notice all lending institutions and equity investors involved in any funding discussions for this project that he will vigorously defend his interests and reserves all his rights.