Belize Times September 30, 2012 by Belize Times Press

Sunday, September 30, 2012

THE BELIZE TIMES

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SUNDAY September 30, 2012

Issue No. 4815

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Lock, Stock & Barrel

S&P not impressed by GOB’ Superbond partial payment S&P says Belize Selective Default foreign currency rating and its Default rating on the bonds will remain despite the part payment.

BSI sale includes giving up millions in taxes to US Company Belize City, September 26, 2012 The Barrow Administration took the risk of dragging Belize’s economic reputation in the mud when it refused to honor its Superbond debt obligation on August 20th. It claimed it didn’t have the money to pay bondholders. The Barrow Administration has refused to grant public officers and teachers a much needed and overdue salary increase. It also claims it does not

have the money to pay. But today the same Barrow Administration approved a bill that surrenders tens of millions of dollars in tax revenue for a wealthy American company. The Sugar Industry and Cogeneration Project

The UDP has sold out Belize sugar industry to a foreign company

PUP DEFENDS

Bill was rushed through all three readings during a raucous meeting of the House of Represent ative today. Support for the Bill only came from the Government-side, as the Opposition People’s United Party opposed, calling it an outrageous accommodation agreement. The Bill is entirely about a heap of tax exemptions for American Sugar Refining, the US Continued on page 3

21st Parade in OW

CANE FARMERS

Page 19

Reid Between the Lines: Our families and friends from abroad have all returned to their greener pasture and we are now left to face these troubles and hardships alone.

Page 13 Development Concessions & Investments The government ruling politicians view these exemptions as “favors” they “give” to investors. They view these benefits as SUBSIDIES to investors, and even calculate a “revenue loss” value from such exemptions.

Page 15

New foreign company will enjoy multitude of tax exemptions Cane farmers demand equal treatment Prime Minister refuses to consult

Page 4

NICH allows Porn filming at Mayan Temple? Page 19

Scenes of 21st day parade in Orange Walk Town

Page 10

Happy 62nd Birthday PUP

THE BELIZE TIMES

Sunday, September 30, 2012

PUP says Tax Exemptions for BSI Sale are sour September 25, 2012 The Northern Caucus of the People’s United Party expresses grave concern with the Sugar Industry and Cogeneration Project (Development Incentives) Act, 2012 bill which seeks to provide exemptions from taxes and duties to American Sugar Refinery (ASR)/ BSI/BELCOGEN. The bill which is to be passed at a special sitting of the House of Representative on Wednesday, 26th September 2012 shall seek to exempt the companies from income and business tax, retrospectively; 2008-2012. The Bill shall also exempt BSI/ BELCOGEN/ASR from withholding tax as follows: on dividends, on payment for technical services, and on interest payments to non-residents of Belize. The companies shall also be exempted from Customs and Excise Duties and Environmental Tax for a period of ten years. They shall be granted exemption of 50% of Stamp Duty payable for the cancelation or assignment of existing security documents and other instruments necessary to give effect to the acquisition of the shareholding in BSI or ASR. The Northern Caucus recognizes that the sugar industry is one of the most important industries in the country and as such the government must find ways to secure the viability of the industry for all stakeholders. Our concerns are as fol-

lows: 1. This Bill as it stands will give an unfair advantage to BSI/BELCOGEN/ASR over Belizean cane farmers allowing BSI to produce sugar cane at much lower costs, while the cane farmers continue to struggle to meet the daily escalating costs. 2. A couple of weeks ago the cane farmers approached the government for a loan of BZ 1.5 million dollars to the fight froghopper infestations and were flatly rejected by the government. The Northern Caucus, with the approval of the Parliamentary Caucus of the People’s United Party, hereby demands the following: 1. That this Bill be deferred until there can be proper consultations with all stakeholders. 2. That these exemptions be also granted to all Belizean cane farmers. The People’s United Party will be monitoring the sale of the Belize Sugar Industry Ltd and BELCOGEN Ltd to ensure that there are maximum benefits to the BSI workers, cane farmers and Belize. (Press Release)

National Service Day in Caribbean Shores

PUP Caribbean Shores Standard Bearer Dr. David Hoy planted 15 fruit trees in the yards of residents of the area

Dr. Hoy makes donation of drum set to the Principal of Canaan High School

BSCFA demands equality and respect September 25, 2012 Hon. Dean Barrow Prime Minister Office of the Prime Minister Belmopan Dear Hon. Prime Minister: We have learned, through the local media, that you intend to present a Bill entitled Sugar Industry and Cogeneration Project (Development Incentives) Act, 2012 at the sitting of the House of Representatives on Wednesday September 26, 2012 for its enactment. This Bill provides for “an Act to provide for certain exemptions from taxes and duties to attract new capital investment into the sugar industry and to make revised and improved provisions for the continued development of the Belcogen Cogeneration Project…” At a meeting held in May 2012 among representatives of American Sugar Refining Inc. (ASR), the Belize Sugar Industries Ltd, Belcogen Cogeneration Ltd., the Belize Sugar Cane Farmers Association, the Government of Belize and yourself, you had given us a commitment to consult with us on the terms and conditions of any favourable business consideration which you and your Government would grant to ASR. We must say that your introduction of this Bill to the House of Representatives on Wednesday without prior consultation with us does not reflect good faith towards us as one of the key stakeholders in the sugar industry. While we support positive measures to encourage and promote local and foreign investment in our country, we find that the tax and duty exemptions being provided to ASR, BSI and Belcogen as being excessive, especially since the profitability and future prospects of BSI and Belcogen have improved considerably due largely to the sugar cane quality program and other measures implemented by the BSCFA among other factors. We are greatly concerned about the unfair advantage these tax and duty exemptions will provide to ASR, BSI and Belcogen. Cane farmers are being urged to increase cane production but they are facing a high cost of cane production due to the increasing cost of inputs, such as fertilizers, herbicides, fuel, tire, spare parts, machinery service and others, while ASR’s cost of production will be low. BSI’s and Belcogen’s income and dividends will not be taxed, while the income of our cane farmers will be taxed. The industry requires financial resources for pest control and sugar cane road repairs and maintenance, while BSI and Belcogen will accumulate taxable income that could assist in resolving these problems. These exemptions aim at making the rich richer and the poor poorer, as they do not advance the Government’s

Pro-Poor Policy commitment. However, we are particularly concerned about Section 8, which provides BSI with the unrestricted right to export raw sugar and molasses for a period of ten years with effect from September 1, 2012. We oppose the granting of this unrestricted right and request an amendment to Section 8 to delete the words “unrestricted right” and to include the words “to hold appropriate consultations with the BSCFA in relation to the export of sugar and molasses and any other by-product and any other sugar manufacturer”. We would like to , therefore , request that the Government of Belize grant the BSCFA and its farmer members the same tax and duty exemptions for the same period of time granted to ASR, BSI and Belcogen. It is only fair and just that our farmers received all the necessary assistance to enable them to expand their cane production at a low and reasonable cost and not be displaced by ASR and BSI. We trust that you will take our concerns seriously and grant us a favourable consideration. We wish to affirm our commitment to work as business partners with you and BSI/Belcogen and ASR for the viability of the sugar cane industry and our cane farmers in a framework of mutual respect, consultation and collaboration. Yours sincerely, Mr. Ramon Aban, BSCFA Chairman Mr. Lucilo Teck, Secretary

THE BELIZE TIMES serving Belize since 1957 as the longest continous newspaper. Founder: Rt. Hon. George Cadle Price, People’s United Party Leader Emeritus

EDITOR

Alberto Vellos LAYOUT/GRAPHIC ARTIST

Chris Williams Published By The Belize Times Press Ltd. Tel: 671-8385 #3 Queen Street P.O. BOX 506 Belize City, Belize Email: belizetimesadvertisement@yahoo.com

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Sunday, September 30, 2012

THE BELIZE TIMES

Lock, Stock & Barrel Continued from page 1

Company which has engineered a smooth buyout of BSI. A new share capital set up in late May gave ASR 80% to 85% of shares the company. In return, ASR offered US$62 million in equity to be used to pay off the debt owed to the ING Bank and First Caribbean International Bank. ASR also promised $30 million to improve the factory, and additional financing to pay off the overdue dividends to BSI workers. The total dividends are $5.2 million. It is clear that ASR sees worthiness in BSI, despite the sugar company’s financial travails; the kind of worthiness that should have also made the Barrow Administration consider continuing it’s so called “nationalism” and keep the company in Belizean hands. But somehow the Prime Minister didn’t see anything sweet in BSI. Instead, the Government supported the selling out. They even became intimately involved in the sale and through special connections they attracted the Honduran bank, Banco Atlantida, a year ago. That deal went sour after cane farmers learnt of an array of unfair terms for the Bank, including the exchange of 20,000 acres of land that would have made the new Bank-owned BSI a supersized cane producer. Farmers complained bitterly. One of the bank’s high-level negotiation meetings in Belize City was cancelled due to a bomb threat. The Opposition threatened to reverse any deal that didn’t include cane farmer ownership. The Atlantida ship sank. BSI’s future remained obscure. A buy-out proposal from the Cane Farmers Association was flatly rejected. They didn’t even obtain Government support. But in May 2012, ASR surfaced and in the dark the details were worked out. The Bill taken to the House of Representatives today is a product of those closed-door negotiations. Everyone knew of BSI-ASR debt-equity exchange, but no one expected the extent of Government’s involvement and accommodations to enable the ASR to realise. Included are a slew of tax concessions for BSI, BELCOGEN and ASR and any of its subsidiaries for the following: - Exempt BSI and Belcogen from ALL Income and Business Tax retrospectively from the 1st of January, 2008 up to the 31st of December 2012; from 80% of IBT in 2013; from 60% of IBT in 2014; from 40% of IBT in 2015; from 20% of IBT in 2016. - Exempt BSI and Belcogen from paying withholding taxes on dividends and on payments for technical services for 5 years starting the 1st of September 2012; and

from paying withholding taxes on interest payments to non-residents of Belize for 10 years staring on the 1st of September 2012. - Exempt BSI and Belcogen from customs and excise duties for 10 years effective the 1st of September 2012. - Exempt BSI and Belcogen from payment of environmental tax for 10 years effective the 1st of September 2012. - Exempt ASR from 50% of the stamp duty that should be payable on the transfers of securities, security documents and other in-

struments in their acquisition of BSI and BelCogen. - Exempt BSI and Belcogen from ALL exchange control restrictions for 10 years effective the 1st of September 2012. The Bill also grants unrestricted right to BSI to export raw sugar and molasses for 10 years effective September 1st 2012, regardless of what the Sugar Act stipulates. Industry observers tell us that these exemptions total up to $40 to $50 million in revenue which the Barrow Administration is foregoing. In doing so, the Barrow Administration

is caught up in a series of serious contradictions that it needs to explain to the people of Belize. The first is that if the Government truly believes in nationalisation, why it didn’t choose to keep BSI Belizean-owned. The second is that the Barrow Administration has granted a series of accommodations similar to the BTL accommodations which it considered offensive. How could it be acceptable now? The last point is that if the Government is so cash-strapped that it cannot afford to pay its debt or to increase wages, how could it possibly afford to forego revenue and for a foreign company?

THE BELIZE TIMES

Sunday, September 30, 2012

PUP DEFENDS CANE FARMERS Belize City, September 25, 2012 The Barrow Administration approved the controversial Sugar Industry and Cogeneration Project Bill in a rush at today’s House of Representatives meeting, despite serious concerns raised by the Opposition People’s United Party and key sugar stakeholders. Following the introduction of the Bill by Prime Minister and Minister of Finance Dean Barrow, PUP representatives raised a number of concerns about the purpose of the Bill, pointing out that it provides millions of dollars in unnecessary tax concessions for American Sugar Refining Inc., the foreign owners of the previously Belizean-owned and managed Belize Sugar Industries. PUP Leader Hon. Francis Fonseca said the deals prepared by the Barrow Administration in secret create an unfair advantage for ASR/BSI. He said the arrangement is a slap on the faces of cane farmers who were not consulted even though it is their livelihoods that are being affected. The Bill awards a multitude of tax exemptions to ASR. PM Barrow said the exemptions are just an extension of what existed under the 2005 Belize Cogeneration Project Act, but former Rt. Hon. Prime Minister Said Musa challenged that. Hon. Musa said there are fundamental differences including that the 2005 Act provided support for cogeneration only which was a project to achieve biomass energy. The current bill for ASR encompasses all of BSI’s operations, including its production of cane. This is where the disadvantage is created, because while ASR, a wealthy foreign company, will now enjoy tax exemptions for customs and duties, environmental tax, and stamp duties in all its machinery and supplies, cane farmers won’t. PUP representative for Orange Walk South and cane farmer, Hon. Jose Abelardo Mai, was very outspoken against the bill. Hon. Mai said cane farmers were “shocked” when they learnt of the extent of the concessions being granted to ASR/BSI. “Nothing is worse than to give the largest cane producer customs and excise exemptions Hon. Speaker, this is a blow to cane farmers,” Hon. Mai declared. BSI is a cane grower with about 3,500 acres of cane field in the Orange Walk District. They produced 92,000 tons of cane in the last crop, or almost 30 tons per acre. Hon. Mai argued that BSI has always had the man and machinery power to outdo cane farmers. Additionally, they can attract better financing and have the resources to carry out research and set up defence mechanisms against threats such as the froghopper. “Yet, the Government still wants to give them tax exemptions. They [BSI] is not worthy of the concessions, the cane farmers are,” he remarked.

Hon. Ramiro Ramirez, PUP representative for Corozal SouthWest and cane farmer also, said the playing field will definitely not be level any more. He cited that for cane farmers, the cost of production is already too high. “A bucket of oil cost $70 in 2008, today it costs $95. Tires cost $578 in 2008, today it costs $1,200. If you want to help the farmers, give them the same opportunities,” he pointed out. Hon. Ramirez’s sentiments echoed the views expressed by the Belize Sugar Cane Farmers Association (BSCFA) in a letter they sent to the Prime Minister on Tuesday, September 25th. In that letter, the Association requests that the Government “grant the BSCFA and its member the same tax and duty exemptions for the same period of time granted to ASR, BSI and Belcogen”. The BSCFA states that cane farmers are facing increasing cost of production due to the increasing cost of inputs such as fertilizers, herbicides, fuel, tires, spare parts, and machinery services. Additionally, states the BSCFA letter, while BSI and Belcogen’s income and dividends will not be taxed, the income of our cane farmers will. “These exemptions aim at making the rich richer and the poor poorer, as they do not advance the Gov-

ernment’s pro-poor policy commitment,” declares the BSCFA letter. While at today’s House Sitting, Orange Walk Central Representative, who is also a cane farmer, Hon. John Briceño supported the BSCFA’s call for inclusion. The Bill grants ASR a monopoly over rights to export raw sugar and molasses, but the BSCFA believes that since cane farmers own the cane product they should also have a say. “We oppose the granting of this unrestricted right and request an amendment to delete the words and include ‘consultations with the BSCFA in relation to the export of sugar and molasses and any other by-product and any other sugar manufacturer’”, stated the BSCFA. Hon. Briceño proposed that a marketing committee be set up to include representation of all sugar stakeholders.

Despite the concerns raised in the BSCFA’s letter to the Prime Minister, and the call by Opposition Leader Hon. Fonseca to defer the Bill until full consultation occurs, the Barrow Administration went ahead to approve it. The BELIZE TIMES understands that the BSCFA has warned that they just won’t “stay quiet”. “We are prepared to take the necessary steps to ensure our voices are respected and heard,” said the BSCFA in an interview with CTV-3 News in Orange Walk. And in a similar warning, Hon. Fonseca warned the Prime Minister to do what’s right. “You don’t like to listen, but this is one time you need to listen and learn from the cane farmers of this country,” said the Leader of the Opposition.

Sunday, September 30, 2012

THE BELIZE TIMES

Hon. Francis Fonseca,

Leader of the Opposition, Independence Day Address September 21, 2012, City of Belmopan My Fellow Belizeans A pleasant good morning to each and every one of you. In his book: “George Price-Man of the People” Rudolph Castillo records that it was on July 26th, 1981 at the Belize City Centre before a gathering of some 6000 people that then Premier George Price broke the news that Belize would become an Independent nation on Monday, September 21, 1981. Castillo reports on the people’s reaction: “Ladies rushed unto the platform and kissed their leader. Men hugged him in joy. Soon he was lifted off his feet and showered with love and adoration by those gathered at the City Centre. In one corner people hugged and kissed one another; spontaneous dancing broke out; some just screamed; some broke into hysterical laughter. Some older people transfixed by happiness, sat and just cried their hearts out as joy and happiness excited the crowd at the announcement of the long awaited day. George Price had to be rescued from the unbridled love of a people for their great leader” Fifteen days later on Thursday, September 10, 1981, just 11 days before Independence, George Price addressed thousands of Belizeans gathered at historic Court House Plaza for national Day celebrations. He reminded those present that: “31 National day Celebrations have helped to build the new nation of Belize with all its territory intact and to ensure its Independence.” In his well researched and written book: “George Price-A Life Revealed”, Godfrey P. Smith brilliantly and dramatically recounts the birth of our nation: “About a minute before midnight, the lights at the Governor’s residence were switched off. As the seconds ticked by, a drum roll began. The Union Jack was slowly lowered in the darkness of the night and the Belizean flag hoisted in its place. On the stroke of midnight, lights in the compound were switched back on and spotlights illuminated the Belizean flag fluttering in the light September breeze. The 1st Gordon Highlanders played, Land of the Free, the National Anthem of the newly Independent Belize as Price, dressed in his white, long-sleeved guayabera, and the guests, stood to attention. Across the harbor, clearly visible from the grounds of the Government House, the HMS Ariande discharged a 21 Gun Salute as Price proposed a toast to Her Majesty Queen Elizabeth. Later that day the official handing over of the Instruments of the Independence Constitution took place here in Belmopan and the following day Price flew to New York to be present when the UN Security Council and the General Assembly voted to approve and formerly admit Belize as the 136th Member of the United Nations. Indeed to think of Belize’s Independence is to think of George Price.

Two days ago on September 19th our nation observed National Service Day in honor of the Father of our Nation. It was on that date, one year ago, that the Lord called home this good and faithful servant. The Lord saw that he had grown weary after a life of work and service to his people and nation. If but for a brief moment, our nation stood united in its loss and sorrow. Thousands travelled from our cities, towns and villages to pay their final respects and honor the man whose tireless efforts and sacrifice, above and beyond all others, had made it possible for us to be Belizean. Maya, Creole, Mestizo, Garifuna, East-Indian, Mennonite, Asian, Hindu, Arab, African,-we all mourned as one. On this Independence Day let us renew our commitment to this unity of spirit and purpose and let us guard against the growing danger of “intense individualism”. A healthy democracy is not simply a society in which individuals pursue their own goals. Democracy flourishes when it is tended by Citizens prepared and willing to use their freedom to actively engage in the life of their nation, adding their voices to the public debate, electing representatives whose values reflect their aspirations, and accepting the absolute requirement for consultation, dialogue, respect, and tolerance in a free society. Thirty-one years ago, as Smith records in his book, “there were many questions about the viability of Belize after Independence. The New York Times of October 4th, 1981 reported that amid the toasts following Independence, a lingering doubt floated among the foreign delegations-Belize had become an Independent State but was it viable as a Nation? Foreign Analysts argued that it would be difficult for Belize to generate its own wealth. A third of Belize’s total imports consisted of food, it had virtually no industry and employment opportunities remained scarce.” Prime Minister Price’s Independence Day message on 21st September, 1981 was devoid of any triumphalism or the un-bounding of grandiose ambitions. He was conscious of and preoccupied with

the everyday practical problems that lay ahead. Like, quite literally, how he would meet the payroll and debt obligations of his Government. Since that time, Belizeans-as government and people have together been writing our own chapters in the book of Independence. Ours is a story that has tracked back and forth between triumph and adversity, prosperity and paucity, hope and despair. But, taken in the balance, what we have accomplished as a small nation fills us with the optimism to take up, year after year, the immortal challenge issued to all Belizeans from the father of the Nation, to be committed Nation Builders. By any standard, there are very good reasons for us to pay tribute to Belize and its people. Pressed against our backs, propelling us forward is a short but compelling history of peace and stability, ethnic cohesion, democratic traditions, primacy of human rights and respect for international obligations and international law. It is, after all these hallowed values and traditions that have consistently won us respect and support from the community of nations in the face of threats to our territorial integrity. As a small, vulnerable and highly dependent nation, maintaining the support of the international community must rank among our paramount objectives. In a few short hours, these formal ceremonies being held across the districts of Belize will come to an end, giving way to people’s celebrations. This is as it should be. But as responsible citizens and leaders we are aware that, on Monday, after we’ve shaken off the residue of month long revelry, serious challenges await us as a nation. We know them only too well. -30,000 Belizeans actively seeking a job cannot find one -148,500 Belizeans living on less than $5.50 per day for food -the ongoing restructuring of the 2029 Bond -the scourge of violent crime threatens our social fabric -less than 50% of our children are completing secondary school -oil revenues are on the decline -Foreign Direct Investment remains elusive -and the unfounded Guatemalan claim persists Challenges, yes. But no one dare question the viability of our beloved nation. Belize has 8,867 square miles or five million six hundred and seventy four thousand eight hundred and eighty acres of land, twelve miles of territorial sea, two hundred miles of exclusive economic zone, untold natural wonders, and the skill and ingenuity of an over one hundred

Sunday, September 30, 2012

and thirty thousand strong labor force. It has geographic proximity to and shares the English language with the wealthiest country on earth. It has other large markets in its immediate vicinity and it has inherited the preferred and familiar English Common law system. Thirty one years after Independence it is time for us to competently and efficiently maximize the use of all these resources and comparative advantages to achieve economic growth and development. We must reinvent ourselves to be relevant to present and future challenges. We must forge strong, meaningful alliances with civil society, the church community, and the private sector to create a more just and equitable society and a more productive, competitive and prosperous nation. Independence, even 31 years on, offers us no guarantees. It is both a promise and a challenge. It is a promise that Belizeans working together can govern ourselves in a manner that will serve our aspirations for personal freedom, economic prosperity, and social justice. It is a challenge because the success of that Independence rests upon the shoulders of the citizens of Belize, and no one else. Independence requires that we Belizeans share both in its benefits and its burdens. We who have embraced the work of nation building and self-government must commit ourselves to the principles of individual freedom, human rights and the rule of law for those who are yet to come. Our vision for Belize must be one in which our children are born into strong functional families, receive a quality education which equips them with the knowledge, skills, and attitudes required to find or create employment and lead lives of dignity while raising a family and preparing for a comfortable and secure retirement. On this 31st Independence Day celebration this must be our shared vision. If Belize is to grow and develop, all of us must be committed to a strong Belizean economy and society grounded in credible, practical plans and solutions to the social and economic challenges we face. Our Government must be a Government for all the people not a Government just for those supporters of the political party in office. The results of the March elections demand respect and dialogue. We in the opposition People’s United Party have been patient and respectful in light of the serious social and economic challenges our country faces. The authority of our duly elected representatives must not be undermined and the needs of those we represent must not be disregarded and ignored. We can do better Belize! We must do better! In the words of the Psalmist, let us call out to our God: “show me your ways, O Lord; Teach me your paths. Lead me in your truth and teach me, for you Are the God of my salvation; On you I wait all my day.” HAPPY INDEPENDENCE DAY! MAY GOD CONTINUE TO GUIDE AND BLESS BELIZE!

Sunday, September 30, 2012

THE BELIZE TIMES

Humor

in UDP Politics! The following matters were discussed in Cabinet: The Cab Sec asked each representative where they spent Independence Day. Contreras said he and Salva left from the 19th to Melchor, but Salva disappeared immediately after. When everyone turned to Salva to find out why he disappeared, he replied, “Ask Montero!” ……………………… The Prime Minister was asked why is it that Sedi never gets to act as PM, the way Gapi and Faber do. “Well,” came the response, “Sedi is always flying here and there, to Israel or a meeting in Guatemala, but that is not the only reason…he may thing Acting PM is too artificial.” ……………………… Longsworth was asked what he had against the 3x3 basketball tournament in Belize that he didn’t want to provide sponsorship. Boots asked, “You mussy noh like Coke”. Then Faber replied, “Me noh blame ah…me no like Mark crowd either!” ……………………… Faber was ridiculed in Cabinet by Saldivar for giving into the Church’s demands to recall the HFLE manual. “Yu too soft…that’s why yu can’t be party leader,” said Saldivar. Castro defended Faber saying, “Yu did the

right thing Rasta…the Church is too powerful.” Just then Faber said, “They may have won this one, but I can do many things through the backdoor”. ……………………… In other related Cabinet News: John Saldivar was seen trotting and galloping, then halting and gasping for breath one early morning. A lady who was exercising in the area thought he was catching a stroke, so she went to help. When she went closer, she froze and shouted, “Man you can’t be serious…you can’t exercise and eat garnaches at the same time”. ……………………… Representatives of stores owned by Santi were on the radio this week advertising discounts on imported products. One caller called in and said, “Dem discounts sound nice, nice…but tell me…where will we get the money to buy?” ……………………… After being forced to pull the HFLE Manual from the school curriculum, Faber was asked what he will do with them, he replied, “We’ll have to make the wording more ambiguous”. ……………………… Castro was on Krem Radio one day complaining about the bus industry and what was not working and how bus operators were greedy and the commuters were being chanced. One caller got so tired of the Minister, when the call came in the person said, “I mi think yu da di Minista boss, but after I hear yu its clear yu dah only the bus conductor.”

THE BELIZE TIMES

Sunday, September 30, 2012

Scenes from Belize City

Independence Day

2012

Sunday, September 30, 2012

THE BELIZE TIMES

Scotia Bank

BELIZE'S #1 SPORTS PAGE

Honey Bees spike on SQ Stars

City Boys upset

Placencia Assassins 2-1 Belize City, September 23, 2012 The Placencia Assassins did not wear their championship boots when they squared off against the Raymond Gentle City Boys in the fifth week of Premier Football League of Belize competition. The City Boys defeated the Placencia Assassins 2-1, ending their undefeated streak. Goals were scored by Dalton “Chicken” Cayetano in the first half, followed by David MaCualay Jr. in the second half, and one more by Collin Westby to put City Boys over the edge.

Emmanuel Martinez Verdes scored 3rd goal

Other games: Belize Defense Force vs. Belmopan Bandits – 1-1 Goals by: Ralph Flores, David Madrid Hankook Verdes vs. Paradise Freedom Fighters – 3-2 Goals by: Humberto Requena, Pedro Guerra, Robert Muschamp, Emmanuel Martinez, Alex Peters Juventus vs. San Pedro Sea Dogs – 1-0 Goal by: Michael Whitaker Police vs. San Ignacio United – 1-0 Goal by: Gilberto Carillo (autogoal) San Felipe Barcelona vs. FC Belize – 0-0 Upcoming Games: Paradise Freedom Figthers vs. Belmopan Bandits, Isidoro Beaton Stadium, Saturday night Police vs. San Pedro Sea Dogs, MCC grounds San Felipe Barcelona vs. Placencia Assassins, San Felipe BDF vs. Verdes, Norman Broaster Stadium FC Belize vs. R.G. City Boys, MCC Grounds Juventus vs. San Ignacio United, the People’s Stadium

outlasts Atlantic Bank in interoffice volleyball Belize City, September 23, 2012 The Scotia Bank crew outlasted Atlantic Bank in three sets on Sunday morning in the interoffice volleyball competition at the Belize Elementary School auditorium. Scotia Bank dominated the first set 25-13, but Atlantic Bank rallied a comeback in the second set 25-16. Atlantic Bank tried their best by getting Yolany Diaz in play in the third set, but Scotiabank prevailed 15-12. Other matches: Simon Quan Dragons vs. UK Royals – 25-21, 25-23 Croshers vs. UK Hitters – 18-25, 25-10, 15-12 Belize Telemedia vs. First Caribbean “Serv-ivors” – 25-22, 26-24 Simon Quan Black Stars vs. Honeybees – 22-25, 25-18, 15-13

Ecumenical boys bomb Nicaragua 6-2

Ecumenical took down Nicaragua 6-3

San Salvador, September 23, 2012 The Stann Creek Ecumenical High School bombed Nicaragua 6-2 at the Las Delicias Stadium in San Salvador at the XVII Central American Junior Scholastic (CODICADER) Games hosted by El Salvador on Tuesday, September 25. Hassan Lucas scored a hat trick, then added a fourth goal, while Melvin Valerio and Marlon Escobar scored a goal each in the 6-2 rout. Jamal Westby scored a goal for Belize in the second half of their game with Panama at the Magico Gonzalez Stadium last Thursday, September 20. Panama led 4-0 at intermission, but the Ecumenical boys tightened their defense and allowed the Panamanians only two more goals in the second half, Panama

won 6-1. The team rested on Friday, before taking on Guatemala at the Las Delicias Stadium on Saturday, September 22. Hassan Lucas and Kyle Valerio each scored a goal for Belize for a 2-2 draw at intermission, but Guatemala won 6-2. The Ecumenical boys improved with each outing, and held El Salvador to a scoreless draw up to intermission at the Magico Gonzalez Stadium, but El Salvador scored two goal within 10 minutes at the start of the second half, and went on to win 3-0. The Ecumenical boys will play Costa Rica Guatemala at the Las Delicias Stadium on Wednesday, and Honduras at the Magico Gonzalez Stadium on Thursday, before they return home on Friday, September 28.

THE BELIZE TIMES

Sunday, September 30, 2012

Scenes from Orange Walk

Independence Day

2012

Sunday, September 30, 2012

THE BELIZE TIMES

Barrow’s Independence Speech – Trying to make good out of terrible situations Belize City, September 22, 2012 There was something totally different about Prime Minister Dean Barrow’s speech this year. While it couldn’t compare to the substance delivered by the Leader of the Opposition Hon. Francis Fonseca who called for unity and challenged the country to “be better”, the Prime Minister sounded aloof and confused. It was as if he was totally detached from reality. Prime Minister Barrow refused to discuss the real challenges facing Belize. He made no mention of the 40% plus poverty rate and 30% plus unemployment rate. He carefully avoided discussing the alarming crime levels. In fact, for the 1st time in recent years, he didn’t sound like a scratched record repeating the promise of a forensic lab to improve the prosecution of criminals. Instead, he resurrected an old but futile idea of having a Cabinet subcommittee to come up with an anti-crime strategy. This he proposes, as if anyone in his Cabinet has any experience in social work and community development. This time there was no mention of VOIP for telecommunication customers and businesses. No mention of a new relationship with the private sector. No plan to rescue the economy or the introduction of new and pioneering ways of providing opportunities to Belizeans. Instead Barrow, who had just returned from Miami in his fifth or sixth trip for the year, tried to play around with the Independence celebration theme: “Many faces, many dreams, one goal”. Barrow claimed that his administration and Belizeans were on the same track, even though his Ministers drive Lexus cars and 2012-model vehicles on free gas, while Belizeans can barely afford to feed their families. Barrow believed the theme is most relevant, and his Government had just recently revealed their slogan of “One people, One government, One Belize”.This, once more, is a confusing message as the Government has been caught acting against the people’s will, for example, the offshore oil drilling case, the 13th Senator case, Government’s tax on the high cost of fuel, etc. Clearly, the Barrow Administration has done its best to ignore the people’s cry. Most surprising about the Prime Minister’s speech was his puzzling choice of illustrations in his attempt to associate his Government with examples of “successes”. Barrow spoke of 13 year old Rowan Garel, who had accomplished a tremendous feat – walking from Western Belize to Belize City

to raise funds for a summer program for children with disabilities. But Garel’s struggle is a reflection of Government’s lack of proper support to assist programs that aid children with disabilities. While Garel finished his trek, there was insufficient support. In fact, the reason financial donations barely trickled in for Garel was the heavily-advertised Government-sponsored Fundraiser that occurred a week before which sucked out funding from

local donors. That event turned out to be a political stunt for UDP politicians to “look good” by giving away public money. They showed their faces on the TV-aired show, but none, not the PM nor any single Government walked with Garel at 5am. Barrow also made mention of Police Corporal Victor Lima who was killed as he responded to a distress call in Hattieville. The PM said the officer “gave his live for the country”, but

11 we’re sure Lima would not have suffered the unfortunate fate if a bullet proof vest had been provided to him. We’re also sure that if the Barrow Administration would give more than lip service to much-needed resources for the Police Department and if Lima was not the only officer at the Hattieville Station and if the Station had an operational patrol vehicle events would have turned out different. Of course, Barrow didn’t seem to remember any of this. The Prime Minister must have not thought out this 21st speech well. He must have still been flustered from the Miami trip. Or is it that he has realised that after all the pretty speeches he has an even harder time delivering, especially when you’re stuck with a set of competence-challenged Ministers for the next five years.

THE BELIZE TIMES

Who is American Sugar Refining, Inc.?

[Published on July 10 BELIZE TIMES edition] American Sugar Refining Inc., the U.S. based company that is poised to acquire majority shares in Belize’s only operational sugar factory, Belize Sugar Industries, remains an unknown entity in Belize. Only as much as has been divulged by BSI’s current managers is public – that it is the largest cane sugar refiner and that it will soon take charge of one of the country’s largest foreign exchange earning industries, taking the spot previously held by Banco Atlantida who gave up on its interest. The BELIZE TIMES did research and found out more about this company that plans to spend over BZE$120 million to acquire control of BSI, in order to increase its dominance in the global sugar market. American Sugar Refining (ASR), Inc. also known as “Domino Sugar” manufactures refined and specialty sugar products in the United States. ASR was formerly known as Tate & Lyle North American Sugars, Inc. which was acquired by Florida Crystals Corporation in 2001. That is when the company went from Tate &

A Fashion Tribute to our History Designer Rebecca Stirm, History Student Cherisse Halsall, and Photographer Monica Gallardo partner to reveal the stories of four outstanding Belizean Historical figures- through fashion. As the smoke of the magnificent fireworks dissipated at midnight on the Eve of Independence many felt a swell of patriotic pride. We all celebrate and express our “Belizean Pride” in different ways; we parade, we decorate, and we dance. How did we decide to celebrate? Well, it all began when I had the privilege of viewing Stirm’s mini collection in her studio earlier this month, I found myself reflecting on the understated elegance and graceful detailing of the pieces. They evoked within me thoughts of old colonial Belize with its wooden mansions and red bricked cathedrals. Through conversations between Stirm, and Photographer Monica Gallardo and I, we were able to come up with a plan for photographing the mini-collection as a “Fashion Tribute to Our History”. A visit to the national archives allowed my discovery of four of our Belizean “Pathfinders” – Women of yesteryear who are worthy of recognition and honor for their hard work and dedication to our nation: Vivian Seay, Dr. Bernice Hulse, Gwendolyn Lizarraga, and Sadie Vernon. On the Sunday morning following the festivities and celebrations of our country’s thirty-first birthday we visited four historical locations to photograph the pieces. We photographed “Vivian”, a white lace and satin day dress worn by model Chloe Daly, at the first Protestant Church building to be erected in Central America- The St. John’s Cathedral in Belize City. Belizean “Pathfinder” Vivian Seay was educated in the Anglican Church school, and went on to become the second female citizen of British Honduras to be named “Member of the British Empire.” This honor was granted due to her diligent work as a nurse, her vol-

unteer service in the wake of hurricane Hattie, and her position as head of the Black Cross nurses. We chose to photograph “Bernice”, a formal white lace dress with long sleeves – worn by Naomi Stirm, in the ruins of the old Belize City Hospital. Belizean medical “Pathfinder” Doctor Bernice Hulse was the first female Belizean to receive a medical degree, and worked tirelessly for the eradication of tuberculosis in our country through the launching of a country wide vaccination campaign. She is also distinguishable as a brave Belizean veteran of World War II where she treated wounded soldiers as a resident at an emergency medical hospital in the United Kingdom. Our team continued that afternoon in the heart of the old capital photographing “Gwendolyn”, a straight cut grey pearl lace mini-dress with pearl detailing and delicately puffed sleeves. Photographs of this dress worn by Model Judy Hoare were taken at the Belize City Court house- a symbol of govern-

Sunday, September 30, 2012

Lyle North American Sugars, Inc. to American Sugar Refining, Inc. in November 2001. The company has a long history, dating back to 1891 when it was founded in Yonkers, New York where its headquarters is still located. Today, ASR continues to operate as a subsidiary of Florida Crystals Corporation with sugar refineries and factories in Yonkers, Baltimore, and New Orleans (United States), Toronto (Canada), Veracruz (Mexico), London (England) and Lisbon (Portugal). Florida Crystals Corporation is a Fanjul Corp. company of West Palm Beach, Florida, whose origins trace to Spanish-Cuban sugar plantations of the early 19th century. This company is led by Alfonso Fanjul Jr., Chairman and CEO, and J. Pepe Fanjul, vice chairman, president and COO, and Sugar Cane Growers Cooperative of Belle Glade, Fla., led by George H. Wedgworth, chairman of the board and CEO. Florida Crystals Corporation has made huge investments to make ASR the largest sugar refiner in the world. In 2007 when it acquired Ingenio San Nicolas S.A. de C.V., a mill that produced 75,000 tons of refined sugar annually, ASR’s Co-President Luis J. Fernandez stated their overarching goal, “This acquisition is an extension of our strategy to be the premier sugar producer and supplier in North America”. Of recent, ASR had to appear in Court to answer to accusations that its boilers violated the federal Clean Air Act permit. If the company admits fault, it could be allowed to bring its boiler operations into compliance, and pay a $200,000 fine rather than face stiffer penalties.

ment in our country. Belizean “Pathfinder” Gwendolyn Lizarraga earned the distinction of becoming the first Belizean woman to be named a Member of the British Empire as well as the first woman elected to the national assembly. She was most vocal about women acquiring their own house lots (an important feat prior to 1954 when only property owners were allowed to vote). We ended the day on Belize City’s iconic swing bridge photographing Krista Cruz wearing “Sadie”, a grey and white, lace and linen day dress with tiny pearl buttons and lace detailing around the collar. Belizean “Pathfinder” Sadie Vernon graduated with a master’s degree from the Earlham school of Religion at Earlham College and became the first native executive secretary of the Christian church council. She is remembered fondly for coping with the needs of human suffering caused by Hurricane Hattie. In the aftermath of the disaster, she spent her days distributing clothing, food, and other goods.

As young women in Belize, launching out in our careers and interests, we are inspired by these women and grateful that we can enjoy and benefit from all they gave to make Belize what it is today. - Cherisse Halsall & Rebecca Stirm Historical Research- Cherisse Halsall. Photography- Monica Gallardo. Fashion Design/Styling- Rebecca Stirm. Models – Chole Daly, Naomi Stirm, Judy Hoare, and Krista Cruz. Bibliography: “Personality of the Month.” The New Belize March1984. “Mothers of modern Belize” “Profiles of four Belizean Patriots” Silvana Woods.Belize National Women’s commission 1991. “Vivian Seay”.The Reporter. 9 November 1986. Ramos, Abraham L.W. “Sadie Vernon.”Amandala. 24th June 1983. Anglican Diocese of belize, “Preparations for the 200th anniversary” retrieved from http://belizeanglican.org/2012/02/15/ preparations-for-the-200th-anniversary/

Sunday, September 30, 2012

THE BELIZE TIMES

Reid A tale of two speeches By G. Mike Reid Belize’s annual month-long period of celebration and merrymaking is behind us and we now move on to face the harsh realities of everyday living. Our families and friends from abroad have all returned to their greener pasture and we are now left to face these troubles and hardships alone. They have no doubt returned with a better idea of what we are facing here at home. Many were appalled at the high price of fuel, which even at the “two to one” currency exchange, far outpace the three and four US dollars per gallon prices that they are used to paying in the states. Many quickly realized that this was not the Belize that they had left behind. Apart from the socializing, festivities and parades associated with September, the occasion offers both government and opposition the opportunity to present to the people their respective views on the “state of the union”. Listening to the Prime Minister and Leader of the Opposition, one might be tempted to believe that these two men live in totally different worlds. The Leader of the Opposition, while calling for a “unity of spirit and purpose” warned against “the growing danger of intense individualism”. He was practical and sincere in pointing out the difficult challenges that awaited us after the festivities were over and done with. Belize is faced with high unemployment, high cost of living, 43% poverty rate and a crime problem that has crippled our social

lifestyle. No less than four rapes were reported over the long weekend along with a number of robberies, burglaries and other serious crimes. While he struggled to remain positive, the Leader of the Opposition was forced to acknowledge that things in Belize were far from what they should or could be. The Prime Minister on the other hand, was his usual pretentious and grandiloquent self. He flaunted his stock of words and tossed around quotations like a beggar squandering wishes. At the end of the day, Prime Minister Barrow had very little to offer and spent most of his time recounting events of the past year. Mr. Barrow spoke of Rowan Garel, Jasmine Lowe and a couple of doctors who performed Belize’s first open heart surgery. Big respect to Dr. Coye and Dr. Cervantes but for the record Mr. Barrow, the world’s first open heart surgery was performed on July 9th, 1893. Good to see that Belize is catching up though. Mr. Barrow went on to beat his chest some more about the “nationalizing” of BTL and BEL. No word yet on how or when the previous owners of these utilities will be paid. In the same breath, Mr. Barrow boasted about the 200 million dollar sale of Belize Sugar Industries to foreign investors. Am I the only one who sees some sort of contradiction here? Neither was any word mentioned about the huge tax exemptions that these new owners are getting from government. This includes exemption of income and business taxes retroactive to 2008 as well as the withholding of “tax on dividends, on payments for technical services and tax exemptions for ten years on custom and excise duties and environmental tax.” Talk about an “accommodation agreement”, not even BTL’s pot was that sweet. Mr. Barrow’s big announcement came early in his speech when he announced the renaming of Belize’s two major highways. According to the Prime Minister, “The Government of Belize, in conjunction with the National September Celebrations Committee is officially renaming the Western Highway the George Price Highway; and

Yet ironically enough, 31 years and counting, Dean Barrow is now the man to stand and extol the virtues of the Father of our Nation and exploit his good name for political gain.”

the Northern Highway the Philip SW Goldson Highway.” Wow, can they do that! Should there not be some process of consultation? And when Mr. Barrow speaks of the Government of Belize, does that not also include the Opposition? Mr. Barrow’s continued refusal to consult with the Opposition on any matter is completely disrespectful and an insult to our system of Democracy. The PUP might need to start flexing its political muscle. There is a question that is being asked in most forums where this decision is being discussed. Just exactly how will this name change help Belize? Will the name change create jobs? Will it lower our debt? Will it help to alleviate poverty? Will it in anyway help to reduce crime? If your answer to any or all of the above is no, then we really must question the real motive behind this move. With all the serious issues confronting Belize today, is this really the best that Dean Barrow has to offer. Dean Barrow is apparently trying to latch onto the coattail of Mr. Price’s popularity. This, after spending a lifetime opposing every policy that the Right Honorable gentleman had tried to implement! Hypocrisy at its highest level! Mr. Barrow was also among those who were vehemently opposed to Belize attaining Independence when it did. He could definitely be considered one of “the Cassandras” who

13 predicted that Belize would not make it as an independent state. Yet ironically enough, 31 years and counting, Dean Barrow is now the man to stand and extol the virtues of the Father of our Nation and exploit his good name for political gain. There are many who believe that a more fitting tribute to Mr. Price would be to finish the George Price Boulevard in Belmopan. The road which provides a practical and convenient alternate route into the capital sits in a state of complete neglect and disrepair. There is also another George Price Boulevard in Santa Elena and many other towns that can use attention. And did we not already honor Goldson by naming our only international airport after him? Dean Barrow is apparently trying to employ this feel-good strategy to divert people’s attention from the very huge problems that confront us. While we did get some of the same old cock and bull story about cows going to Mexico (remember two years ago there were 3,000 at the border waiting to cross?), at least we didn’t get more promises of Voip, cheaper internet and an oil refinery. Mr. Barrow seems to be running out of lies, running out of excuses and running out of time. Nation building is indeed a task for giants, Mr. Prime Minister, not for little people with big words. Rise up Belizeans, we have much to do.

THE BELIZE TIMES

Sunday, September 30, 2012

GOB lies to and manipulates Placencia residents EXPOSED! Submitted by Placencia Water Board Chairman Charles Leslie Jr. Today September 11, 2012; Ladies and Gentlemen, the fine people of Placencia Peninsula; we are here to inform the General Public that the Government of Belize in conjunction with Belize Water Services Ltd. (BWSL), have lied to, mislead and manipulated the communities of the Placencia Peninsula. A TIMELINE OF EVENTS: July 27, 2010: I attended the first meeting about the Integrated Water and Sanitation Programme for the Placencia Peninsula at Robert’s Grove, in the capacity, of the Chairman of Placencia Village along with Francis Palacio, Chairman of Seine Bight Village. A meeting which I video recorded. At minute 49 I stated, from the information I was gathering at the meeting, that it seems that BWSL wants to take over the Peninsula’s Water Boards, I also stated that if I presented the information they just gave to me, that the people of Placencia would reach the same conclusion. Inter-American Development Bank (IDB) Team Leader of the Water and Sanitation Project, Lu Shen, did not clearly state whether or not BWSL would take over the Water Boards. August 2010: “The Ministry of Finance, along with the Ministry of Natural Resources and the Environment, the Ministry of Public Utilities, Information and Broadcasting and the Ministry of Labor, Local Government and Rural Development jointly submitted a Cabinet Paper requesting approval to (i) delegate the management of water and wastewater services in Placencia to BWSL.” It was not until August 27, 2012 that the Peninsula became aware of this cabinet decision, when a document was leaked to the Placencia Village Council and the Placencia Water Board. This document, dated August 20, 2012, which clearly references the Cabinet decision, was written by Maria del Rosario Navia Water & Sanitation Specialist for the IDB, to H.E. Yvonne Hyde, CEO of the Min-

istry of Finance and Economic Development. December 10, 2010: The Integrated Water and Sanitation Programme for the Placencia Peninsula IDB Loan Proposal document (BL-L1015) states on page 4 section 1.9: “Placencia Water Sector Policy Changes: It was determined that the best solution to ensure effective and efficient services in both water and wastewater would be to transfer the responsibilities for water from the Village Water Boards to BWSL.” Also, Section 1.10 of the same loan document, “In August 2010, the Ministry of Finance, along with the Ministry of Natural Resources and the Environment, the Ministry of Public Utilities, Information and Broadcasting and the Ministry of Labor, Local Government and Rural Development jointly submitted a Cabinet Paper requesting for Cabinet approval to (i) delegate the management of water and wastewater services in Placencia to BWSL; and (ii) mandate universal sewer connections. The Cabinet approved the said paper in late August, thereby formalizing the institutional arrangement for the water and wastewater service provision in Placencia.” January 20, 2012: Halcrow’s final report released to the public: EXISTING CONDITIONS > SECTION 2.5.1 > WATER SOURCES > SUB-SECTION 2.5.1.1 > Government of Belize Water Sources states, “Belize Water Services (BWS) Ltd. does not currently serve the Placencia Peninsula in the delivery, treatment or management of potable water. At the time of this report, there is NO known expectation for BWSL to expand its services to the Peninsula.” This statement contradicts the IDB loan document released more than a year earlier, as well as the August 2010 Cabinet decision. In Conclusion, the final Halcrow Report released on January 20, 2012 stated, that there was no known expectation for BWSL to expand its wa-

ter services to the Peninsula. This was 2 years after the Cabinet made the decision, in August 2010, agreeing to dissolve the Water Boards of the Peninsula, and more than a year after the IDB Loan Document was written, stating that the Peninsula Water Boards would be dissolved. In addition, the Halcrow Report listed 4 sewage treatment options. In the same report, Halcrow clearly states that they chose the option that best suited BWSL institutional capacity. There was no consultation or dialogue with Peninsula residents about the sewage treatment options. This lack of transparency and failure to consult the residents of Placencia Peninsula, is in complete op-

position with the Peninsula 20/20 Initiative, which emphasizes sustainable, locally generated development. We have been lied to since July 27, 2010. This project was a brain child of the Placencia Community. We want this project. However, it seems that the minute money got involved, the people of Placencia Peninsula got tossed aside and very important decisions were made without our involvement. The members of the Placencia and Seine Bight Water Boards and Village Councils came together on September 10, 2012, and discussed and drafted some ideas to share with the residents of the peninsula to determine the best way to move forward.

Sunday, September 30, 2012

THE BELIZE TIMES

Home Economics

Development Concessions & Investments By Richard Harrison Development Concessions are an instrument used by the government purportedly to “stimulate” investments. Basically, it involves giving individuals and companies certain “benefits” of some kind of tax relief, usually exemption on import duties of certain input materials used in the production of goods and/or services. For some “chosen” investors, it extends to exemptions of other taxes, such as GST, Business Tax, Stamp Duties, Environmental Tax, tax on dividends, etc. Most of the time, these are given time limits from two to ten years, with the discretionary option of the government to renew. The very fact that a government considers giving Development Concessions…..is an acknowledgement by that government, that its tax policies are standing in the way of investments…. and that by giving those exemptions, such investment will now be viable and able to proceed. If the tax policies are acknowledged to be obstacles to investments….why not change them? If a business starts with a development concession…and during the life of that concession….the government does not change the tax policies that inhibited the need for those concessions in the first place….then is the government saying that those investments should continue even though the policies that inhibit them are still in place? Or should that investment only last for the life of the concession? It boils down to the exercise of power and control….the ability of governments and ruling politicians to choose winners and losers among the governed. Those with the benefits of development concession can fly, as they can operate at lower costs than their competitors who do not enjoy those benefits. These lower costs can allow them to sell at lower prices, or make bigger profits, allowing them to do more and better marketing, distribution and other things that can create advantages in the marketplace. If at any time an investor falls out of favor with ruling politicians….or competes directly with friends of those politicians….the government can choose not to renew its development concession…..thereby forcing that investor to sell at higher prices and/or accept lower margins….both of which forces a decline in such an investor’s business and livelihood of his workers….likely resulting in a gain for the friends of those ruling politicians, and perhaps for their workers. That investor, having already invested, now has higher cost-of-goods and operations, forcing smaller levels of income with which to cover assumed short and long-term commercial debts that has to be paid on previously agreed terms….resulting in a decline, or clos-

ing down, of such an investment…. especially if those debts cannot be restructured to suit its new and lower level of income. It’s a LOSE-WIN formula. It’s the same formula that the government of Belize finds itself in with the socalled Super Bond. They are asking their creditors for a significant “hair-cut” and better terms, based on lower projected levels of income….yet local investors are not considered by the very same governments for “hair cuts” nor better terms…even though they know very well that those companies suffer damages, and will see a significant drop in their levels of incomes, while their debt obligations remain. This situation is ripe for landmark constitutional legal battles for which the government is opening up a can of worms. The government ruling politicians view these exemptions as “favors” they “give” to investors. They view these benefits as SUBSIDIES to investors, and even calculate a “revenue loss” value from such exemptions. When viewed by our international trade partners, our investments APPEAR heavily subsidized, when actually this “subsidy” is merely an artificial compensation for high and unrealistic tax levels that our governments keep in place….to create an artificial need for these development concessions “services”…..so that they can continue exercise their power and control over who wins and who loses in our society. If our governments continue to see the need to exercise this power and control to decide which investors win and which lose….and cannot be creative in finding other ways to exercise this power and control….then they will never change these high and unrealistic tax policies…they will never change the rules to remove this artificial need for development concessions. This system has been going for so long….that even the people blindly agree “that concessions are necessary to stimulate investments”. They are ignorant to the fact that these concessions are actual OBSTACLES to investments. Not any investor wants to be subjected to kneeling down to politicians to get these benefits for their investment dollar. WE Belizean investors do it, because we choose to live here and invest here. In fact, investors from abroad will ONLY subject themselves to these rigors if they can exact super-normal profits from engaging in investments in Belize…..because they will have known from experience….or from references….that when the government change in Belize….or when the government changes its “mood”….the carrot and stick game can change….and hence the country of Belize is deemed to be of very high POLITICAL RISK… and this risk has to be factored into the cost of doing business. Therefore, most investors that have come to our shores

since 1981, have only come if they could MILK the situation with expensive guarantees from our governments. This is a major reason why our interest rates are so high….because our commercial banks are foreign owned….and they perceive this COUNTRY RISK as very high…and they are the ones financing all these THOUSANDS of companies that operate on politically driven discretionary development concessions… and they know that with this carrot and stick game….these companies they are financing can go under at the strike of a politicians pen. Unfortunately….this trend continues unabated….and our government and people are not even considering if and when we should change these tax policies….eliminate the need for these artificial “subsidies”…..level the playing field for ALL investments….and create an enhanced environment for the rapid increase of investments and jobs in Belize. Looking at this from the investment community point of view…..there is the establishment…and then there are the new and potential new investors. There is no agitation from the establishment to change the system….because most of them currently enjoy these benefits…and they consider the risk to their business of losing them to be less, than if a new investor would invest in their line of business with a level playing field. They accept the political risk as being lower than the risk of competing with another, perhaps more-efficient, more effective investor. The government, by acquiescing to the establishment, feeds on their fears…and keeps the system of “chosen favorites” in place….to the detriment of new, more efficient and effective investments. Our establishment investors thus have agreed to become willing pawns in the carrot and stick game, silently colluding with the ruling political class….that is why they play the game of cat and mouse with the politicians…only special invitees welcome to play…thank you very much! The dilemma for Belize, is that the establishment itself will only invest up to a certain point…and will hoard and hide its resources….against the political risks of having their carrot taken away. They will not expose themselves to higher levels of investment….because they know that their investments hinge on very risky political strings. Thus, the investment climate in Belize is not conducive neither to growing domestic investments….nor to growing Foreign Direct Investments (FDI)….unless such investors can exact very high concessions that are as legally binding on the government as can be written in the official English language. Even so, investors have seen that governments of Belize are willing to use their power to change laws and regulations overnight,

15 to use force and other means, in the exercise of its power and control….. which has raised the ante even further in the calculation of BELIZE COUNTRY RISK….and therefore the levels of demands for concessionary benefits upon our government and people…when investors are considering investing in Belize. The risk for Belize increases even further when those FDI are coming from players who originate in obscure undemocratic states, where the carrot and stick game is played with Russian roulette rules….the stakes are higher, and sometimes involve the loss of limb and life. In other cases, the FDI might come from companies that enjoy monopoly or oligopoly status even in the world commodity markets, where they have become adept at using their market power to control states (especially small ones like Belize), not the other way around. Our people say they want more investments and jobs….but they are not pressuring our governments and politicians to change the rules of the carrot and stick game. Our governments do not feel the pressure, nor do they desire to alter their artificially created need to exercise their power and control over choosing winners and losers in our investment community. Our establishment investors do not have any ambition to be more than pawns in this carrot and stick game…as long as they can afford their lollipops. This philosophy…and its mindset….by the ruling politicians and establishment….well entrenched since Independence….is the greatest obstacle to “stimulating” the kind of investments that Belize needs and deserves. It only serves the interest of those inefficient and ineffective investors who thrive on political favor….and the political establishment who benefit from those “accommodation agreements”….no matter how the wolf is cloaked in sheep clothing. Belize should (1) treat ALL investments within Belize alike and allow them a more competitive economy within the global marketplace, where they can operate profitably and freely (especially by lowering import duties and taxes on imported inputs to remove the need for discretionary development concessions and the choosing of winners, removing ALL taxes on fuel except GST, broadening the consumption tax-base at a lower level on ALL goods and services that are consumed, and where possible increasing the import duties on imported competitive goods and services)… (2) it should afford them (especially the nascent industries as permitted by our treaties) advantages in its domestic marketplace over imported competitive products and services, including using SPS measures as allowed by our treaties…and (3) it should negotiate improved market access and trading conditions for its exports and potential exports to our trading partners….especially those with whom we have a significant trade-deficit. Belize can do much better…..if this philosophy of the ruling political and establishment class….is altered voluntarily. Richard Harrison is a local businessman and investor in the manufacturing and service industries. Send comments to harrisonbz@yahoo.com

THE BELIZE TIMES

Sunday, September 30, 2012

…while Belizeans struggle & suffer This is how the UDPs roll…

Is The Bible Real? During our September celebration I found myself having a family round table discussion about the authenticity of the Bible. I listened to the different views and opinions and the scientific or logical cons and pros. There are so many uses and functions for the Bible that it caused me to feel an even greater sense of amazement in regards to this book. One debater described it as the atom of human existence, saying that whoever wrote the Bible really does understand humans. It was referred to as the best psychological book ever. As the days passed I kept thinking of that conversation. Imagine hinging and living your life based on a book, making certain decisions, denying your life many things based on a manual. It tells you not to get drunk, to respect your parents, to love your neighbor, to not be lazy, to help the poor and needy. You learn how to relate to your parents, to your wife, to your kids, how to do business, what’s healthy to eat, how to maintain mental health, and the list goes on and on. If I were to try and list everything that is advised and offered in this book, one mere article would be unable to contain it. The biggest problem that I have found people have with this book though, is that they believe it was written by ‘humans’, who were only trying to push their agenda and were not truly inspired by God. It seems that the same way the rich man in hell wanted Lazarus or an angel to return to earth and tell his brothers about God, seems that most humans would have preferred for God himself to write the Bible and have it glow to prove divine penmanship. How about asking ourselves some question in relation to this constitution. What would our life be like without this book? Why is it the best selling book in the whole world to date? How many religions have this book as the core of their faith? Well to cut to the chase, I like to look at the Bible as a thick juicy tortilla wrapped around a sausage including all the vegetables and spices. The sausage being Jesus, while the tortilla and veggies being the scriptures. You cannot have one without the other. In fact, the whole scripture is wrapped around Jesus and gets its name from him (John 1:1). In the same way this kind of food is called a “Great Dog” Jesus is my “Great Dog” or for those more religiously strict folks, we would have to shift the letters in the word Dog around and correctly say He is my “Great God”. Please don’t be upset with me as Jesus referred to himself the “Bread of Life” (John 6:35). Yes! What makes the scripture come to life and moves it from being ‘just a book’ that tries to justify itself is a ‘divine human’, or better put, a God that took on flesh and came to live temporarily on earth, with the intention to purchase back the species that the devil swindled out of Adams hands. Of course, the only way to pay for this species was with blood and so the whole plan included God giving up His power (Philippians 2:6,7) and coming on earth in a human body and then sacrificing that body on a tree so that whosoever, let me repeat that “whosoever” without prejudice, believes in Him will not perish but have everlasting life! Unlike any other human ever to walk this earth we celebrate both His birthday and His death on a yearly basis all around the world! So I ask you Is the Bible real? Until next week God Bless!

Prime Minister Dean Barrow’s new Law Firm Deputy Prime Minister Gaspar Vega’s 2012 Land Cruiser valued at $180,000

Ministry of Energy and Science CEO Colin Young’s 2011 Toyota Hilux – valued at $65,000

Minister of Gangs Mark King’s Ford 150 - valued at $74,500

Minister of Works Rene Montero’s 2012 Toyota Prado – valued at $96,000

Sunday, September 30, 2012

THE BELIZE TIMES

Serve The People Happy Birthday PUP!

Peaceful Movement On the road to independence…can you help Mr. Price find his way through the maze to the raising of our flag?

Have fun testing your PUP smarts with us this week as we celebrate!

Jumbled Units

Can you arrange the governing units of the PUP from highest to lowest (hierarchical) order? The National Executive The Constituency Branches The National Council The Four Regional Caucuses The National Convention

1. 2. 3. 4. 5.

Who’s Who? Can you match the PUP leader to his or her post? The Hon. Francis Fonseca Wendy Castillo Senator Collet Montejo The Hon. Oscar Requena The Hon. Florencio Marin Jr. Kareem Musa

Party Leader __________________________________

Deputy Party Leader, North ____________________________

Campaign Manager, West ________________________________

President, United Women’s Group ________________________

Communications Director, East ____________________________

Chairman, Southern Caucus_________________________________ Answers: 1. The Hon. Francis Fonseca 2. The Hon. Florencio Marin Jr. 3. Senator Collet Montejo 4. Wendy Castillo 5. Kareem Musa 6. The Hon. Oscar Requena

THE BELIZE TIMES

Sunday, September 30, 2012

BELIZE TIMES WEEKLY

SCIENCE & TECH R

Selected By Chris Williams

Earth cracking up under Indian Ocean 26 September 2012 by Colin Barras YOU may not have felt it, but the whole world shuddered on 11 April, as Earth’s crust began the difficult process of breaking a tectonic plate. When two huge earthquakes ripped through the floor of the Indian Ocean, they triggered large aftershocks on faults the world over, and provided the best evidence yet that the vast Indo-Australian plate is being torn in two. Geologists have spent five months puzzling over the twin quakes - of magnitude 8.6 and 8.2 - which took place off the coast of North Sumatra. Events that large normally occur at the boundary between tectonic plates, where one chunk of Earth’s crust slides beneath another, but these were more than 100 kilometres from such a subduction zone. What’s more, both involved rocks grinding past each other sideways with very little vertical movement - what geologists call strike-slip earthquakes. Yet strike-slip quakes this large had never been reported before. Matthias Delescluse at the École Normale Supérieure in Paris, France, and his colleagues have an explanation. They analysed quakes in the area since December 2004, when a magnitude-9.1 quake in a subduction zone near Sumatra triggered a devastating tsunami. They found earthquakes during this period were nearly 10 times

Survivors of a violent birth (Image: Chaideer Mahyuddin/AFP/Getty Images) more frequent compared with the previous eight years. What’s more, 26 of the quakes that happened between December 2004 and April 2011 were similar to the 11 April quakes in that they involved rocks being

pushed and pulled in the same directions. Taken together, the events suggest that the Indo-Australian plate is breaking up along a new plate boundary, say the researchers, and that may account for both

Is hearing more important than seeing? 26 September 2012 By Mark Changizi, contributor In The Universal Sense, Seth Horowitz makes a compelling case for our most underrated sense WOULD you rather be blind or deaf? You would probably quickly and fervently answer that you’d rather be deaf, if you really had to choose. Vision is too dear to most people. Hearing on the other hand... well, it’s boring. This is a misconception that neuroscientist Seth Horowitz knocks down

in The Universal Sense, in which he sings the praises of this underrated sense. The most frequent argument for hearing’s importance to humans is that it is fundamental to our most valued talents and pastimes - speech and music. That justification, however, is problematic. The sensation of hearing is universal among vertebrates, but the use of it for speech and music is uniquely human. What else, then, does hearing offer? Horowitz shows that there’s so much more. Taking examples from the animal kingdom, he explains how hearing connects

creatures to all the world’s good vibrations. From blackboard scrapes to bats that can hear sounds mere nanometres long, he leads us on a canal tour through the ear. Though the book reads a little like a sequence of field trips, Horowitz recounts fascinating anecdotes of how hearing can tell us a great deal about the world - whether or not we are paying attention. Take, for example, Horowitz’s scenario of going to wash your hands. “You’ll probably think of the water splashing in the sink and that’s about it,” he begins. Then he introduces the possible signals we unconsciously glean, showing us how hearing adds richness

the location and the size of April’s quakes (Nature, DOI: 10.1038/nature11520). Although both are currently on the same plate, Australia is moving faster than India. This is causing a broad area in the centre of the Indo-Australian plate to buckle. As a result, the plate may be splitting (see map). John McCloskey at the University of Ulster in Coleraine, UK, is not yet convinced, saying the evidence from the April events is still too weak to support such a bold claim. But Lingsen Meng at the University of California, Berkeley, who studied the rupture pattern of the larger 11 April quake, is more confident. “I think it’s a fair argument that the 11 April earthquakes may mark the birth of a plate boundary,” he says. Things should become clearer as more earthquakes shake the region. If they are anything like the 11 April events, the rest of the world may shake too. In another new study, Fred Pollitz at the US Geological Survey in Menlo Park, California, and his colleagues found that the global rate of quakes with a magnitude of 5.5 or greater increased almost fivefold in the six days after 11 April - something that has never been seen before, even after very large earthquakes (Nature, DOI: 10.1038/nature11504). “This was the most powerful event [ever recorded] in terms of putting stress on other fault zones around the world,” Pollitz says.

and context to our surroundings: “Pay attention to all the sounds. The sound of your footsteps, whether shod in slippers or socks, padding toward the sink. Did you walk on tile? Is your kitchen echoing with each footstep or are you wearing something soft and absorbent that damps it? When you reach for the faucet handle, do your clothes make a quiet shushing sound? Does the handle squeak a bit?” It wasn’t until I strayed from researching vision into the realms of hearing that I fully appreciated this subtle and fundamental sense. Horowitz’s book, filled with thought-provoking passages and interesting tidbits, will help everyone better see what they hear. I suspect that, like me, Horowitz might prefer to be blind than deaf.

Sunday, September 30, 2012

THE BELIZE TIMES

S&P not impressed by GOB’ Superbond partial payment

Belize City, September 25, 2012 Compelled by limited time, disintegrating talks and imminent expensive legal battles with bondholders, the Government of Belize was forced to cough up a partial payment towards the Superbond. On Independence Eve, September 20th, the Government made a US$11.7 payment towards the coupon it had missed on August 20th. While the part payment has bought them some time, it has gained no reprieve from the Standard and Poor’s credit rating agency, which considered Belize as a selective default nation when it failed to meet its debt

obligations a month ago. S&P says Belize Selective Default foreign currency rating and its Default rating on the bonds will remain despite the part payment. “Our ratings speak to full and timely payment,” explained a release by Standard and Poors on September 21st. S&P said it views the default talks as “distressed” and said that by “any measure” the Government remains in default. S&P indicated that its rating will only change if and when negotiations are completed between the Government and bondholders. The partial payment has allowed the Government a 60-day extension on the very tense negotiations with bondholders. It also avoids the start of any protracted legal disputes which are bound to follow a

collapse in negotiations. The discussions were on the verge of collapse after bondholders refused to accept any of three renegotiation terms presented to them by the Government. Creditors considered the terms “the worst ever”, as it suggested that they take up to a 45% haircut on expected returns. The suggested terms also propose to extend the payment deadline from 2029 to as far as 2060. The Government had budgeted the payment of the August 20th Superbond US$23.5 coupon, but six days prior to the date it announced that it could not find the money for it. Since then the Barrow Administration has come under fierce fire from creditors, including accusations that it is withholding the payment and that it is a tactic to force creditors into submission.

The Hezbollah Connection Belize City, September 26, 2012 The Barrow Administration continues to claim that it has no idea how known terror suspect, Rafic Mohammad Labboun Allaboun, obtained a false Belizean birth certificate, passport and driver’s license in only two days.

NICH allows Porn filming at Mayan Temple? Belize City, September 26, 2012 The BELIZE TIMES has been reliably informed that the National Institute of Culture and History recently approved the filming of pornography at a Mayan Temple in the Cayo District. Our attempts to clarify the reports with NICH or the Belize Film Commission were futile but our source indicates that this occurred at the Xunantunich Mayan temple a few days ago. Our research shows that NICH does allow filming at reserves and archaeological sites. An application must detail what kind of film will be recorded, and along with a fee of $200 per hour for Commercial Video Recording/Filming, there are other requirements such as providing a copy of the final product and the accreditation of location used in the film. We understand that all films must first get permission from the local film commission before requesting the green light from NICH. If our source’s information is as accurate as we trust it to be, NICH and the film commission of Belize must be held to task for the blatant disrespect and desecration of the Mayan temple. The Government must also take steps for this occurrence not to happen, and for its agents to show greater respect for the Indigenous Maya of Belize.

Allaboun stole a Belizean Mennonite identity, Wilhelm Dyck, with assistance from personnel from the Vital Statistics Unit. He then applied for a Belizean passport under that false identity and obtained the travel document easily from the Belize City passport office. And then he travelled to Belmopan where the Mayor’s son-in-law, Traffic Manager Kevin Jones, personally processed his first time driver’s license even after the cut-off time had passed. Information to the BELIZE TIMES indicates that Allaboun also obtained a fake Social Security Card, which may require an investigation of that office as well. The Minister of Immigration, Godwin Hulse, has struggled with the investigation. He finds himself in the biggest scandal of recent UDP history. Not only is it a national shame, but also an international embarrassment as Allaboun was caught with the Belizean passport by U.S. CIA forces in Mexico. The news went global, and everyone knows it was under Hulse’s watch that such corruption manifested. The embarrassment is intensified by the fact that two weeks later, he still can’t give answers. And while the investigations into that one case continue, more immigration red flags are surfacing. There is the case of one Fidel Garcia who has

a passport addressed at Barrack Road, but there is not such person with that name living on Barrack Road. A series of Lebanese-owned stores do adorn Barrack Road. There is also the case of Visas issued to questionable persons travelling from Nepal and India. The businessmen travel to Belize through Central and South America and claim their trip is paid for by a certain store in San Ignacio Town.

THE BELIZE TIMES

Sunday, September 30, 2012