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Prime Minister John Briceno returned home yesterday from a working visit to Guatemala. Today, he attended a Belize Coast Guard event and spoke to the media about Feinstein’s land around Stake Bank and the government’s compulsory acquisition. The Briceno government is seeking to compulsorily acquire the controversial 24-acre extension of Stake Bank. To that end, Land Commissioner Talbert Brackett has sent a letter to Michael Feinstein, former chairman and shareholder of Stake Bank, informing him of the government’s intention to acquire the land for public use. The Prime Minister said this was not a decision made overnight and that due process was followed.
Belize Prime Minister John Briceño: “Regarding the Stake Bank land, as you know, the UDP passed a piece of legislation and we believe that this project is of national importance, but now it seems that there are problems between different investors and the project has stalled. I think we have about $270 million. But because of the dispute over the land, the project cannot be completed, and if you look at the numbers that they are cutting the cruise lines, we need to be able to complete the project. We believe that as a government, the first thing we need to do is to issue a first notice of acquisition. What does that trigger? It triggers the owner to come to the government and say well, this is my land, and then negotiate a price. If the right price cannot be agreed, then we go to the second stage, compulsory acquisition, and then the courts take over. So it’s a simple matter.”
reporter: In this case, it’s the expansion. So what happens to the rest of the property? What’s the next agreement?
Belize Prime Minister John Briceño: “Well, the problem isn’t with the central part. The problem is with the dredged area around the island, which only has a 200-metre gap for reclamation. This land is vital if we want to complete the project, as no work is currently being done. I’ve heard that up to five acres of land may have been washed away, so we really need to act with a sense of urgency.”
reporter: How much will this cost taxpayers?
Belize Prime Minister John Briceño: “It costs money because we are penniless. Why? When this issue was brought to the cabinet, the cabinet said the only way we would consider is to sign a compensation agreement, that is, when the court resolves the matter, if we go to court, then the investors will be responsible for paying the compensation. And, in addition to them signing the compensation agreement, we have financial support, that is, a deposit in the government account as a down payment, and another financial institution will be responsible for payment. So, there is nothing to add.”
Later this evening, the Feinstein Group released a statement saying that the government’s justification was just a ruse and that the group may be pursuing legal avenues. The group said the decision was made following a recent private meeting between Honduran businessmen and Honduran Prime Minister John Briceno. The Feinstein Group said it had consulted its legal counsel, Marine Parade Chambers LLP, which advised that the High Court may declare that the acquisition lacks any legitimate public purpose and that its real purpose is to satisfy the concrete and direct interests of Honduran businessmen. In the statement, the group called the move a heavy-handed intervention in a private sector dispute on the floor of the High Court and called it unfair and improper. The Feinstein Group said that the GOB sided with Honduran businessmen whose business practices were questionable. The company raised several concerns, starting with the fact that Atlantic International Bank Ltd. was forced to pay $23 million to settle Federal Trade Commission charges that it participated in a massive Sanctuary Bay land fraud and entered bankruptcy proceedings. Feinstein also stated that “the government claimed that the acquisition was in the public interest, but senior cabinet ministers deliberately sabotaged the Stake Bank project in favor of competitor Magic Belize Port, resulting in a fiasco and costly court proceedings for the group.” In addition, the press release stated that the government now has other options since the acquisition of Belize Port this year. Finally, Feinstein added that he has notified all lenders and equity investors involved in the financing negotiations for the project that he will vigorously defend his interests and reserve all rights.
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