Government of Belize Engulfed in Million-Dollar Lawsuits Amidst Tourism Industry Dependency

By: Omar Silva, NP Staff Writer

Belize City: Wednesday 8th June 2023

The government of Belize finds itself entangled in a series of million-dollar lawsuits, which has significant implications for the country, particularly considering its heavy reliance on the tourism industry, especially cruise tourism. The recent resignation of Attorney General Magali Marin Young, who served as the country's chief legal officer for two years and seven months, further adds to the complexity of the situation.

One of the ongoing legal disputes involves the Port of Belize Expansion Project and Cruise Terminal. Additionally, Stake Bank Enterprise, represented by the law office of Glenn D. Godfrey and Company, has written a letter to the Attorney General concerning the Controversial Definitive Agreement with Portico. This letter cites the approval and fiscal incentives received from the government through the Stake Bank Cruise Docking Facility Development Act of 2014. It also mentions a Definitive Agreement entered into by the government and Stake Bank Enterprise in August 2017, wherein the government committed to supporting Feinstein and the Company in the construction, operation, and maintenance of the cruise ship docking facility.

According to Lord Michael Ashcroft, a Belizean investor, the government can expect a wave of litigation in the future. In addition to the aforementioned lawsuits, there are threats from Stake Bank and litigation related to the actions of NEAC (National Environmental Appraisal Committee) in connection with Waterloo. These legal challenges will require responses and explanations from the government, including addressing questions surrounding the agreement obtained by Portico through the then former Minister of Economic Development, Erwin Contreras. Lord Michael Ashcroft suggests that Royal Caribbean should have been more diligent in questioning the uniqueness of this contract, which raises concerns about the situation.

The implications of these lawsuits and controversies are substantial, as they are likely to result in significant financial costs for the government and people of Belize. While a swift resolution is possible, the presence of various vested interests suggests that the legal battles could prolong the process. Lord Michael Ashcroft alludes to undisclosed details and events that will come to light during the litigation, indicating that there may be additional factors influencing the lawsuits that are not yet widely known. The obstacles faced by Waterloo and the deliberate nature of these obstacles may also become evident in the litigation papers in due course.