Senate Approves Motion to Investigate Controversial Definitive Agreement

By: Omar Silva, NP Staff Writer

Belize City, Monday, 10th July 2023

A Definitive Agreement between the Government of Belize and Portico Enterprises Limited has sparked widespread concern and scrutiny since its existence became public in May. The agreement, a thirty-one page document, proposed significant concessions for a large-scale project involving the development of a cruise ship docking facility, duty-free stores, concession stands, beaches, restaurants, bars, and a casino hotel with three hundred rooms. The project was planned to be located on the coast of the Belize District, three miles south of the Sibun River.

The validity of the agreement and the potential hidden arrangements for granting concessions raised eyebrows among many. Signed in October 2020 by Portico and the former Minister of Economic Development, Erwin Contreras, the agreement has undergone legal evaluation by the current government. Two legal opinions were obtained, and despite being tabled in Cabinet for consideration, it was ultimately set aside and discarded.

The level of concern surrounding the Definitive Agreement prompted Senator Janelle Chanona, representing the non-government community, to announce her intention to present a motion for the establishment of a Special Select Committee to investigate the matter. In a recent Special Sitting, the Senate unanimously passed the motion, paving the way for the appointment of a committee. The committee will delve into the Definitive Agreement and all related documents, examining the terms and conditions outlined within them.

Senator Chanona stressed the seriousness of the matter and emphasized the importance of conducting a thorough investigation to uncover the truth. The Senate Select Committee, empowered by the Constitution to inquire into national interests, will provide individuals called before the committee an opportunity to review the report within 14 days of its receipt. This approach aims to ensure transparency and fairness in the investigation.

The accusations and counter-accusations of corruption surrounding the Definitive Agreement have been traded by both major political parties. Former Attorney General and UDP Senator, Mike Peyrefitte, contended that the agreement lacked legal authority due to Contreras's involvement. He also questioned the government's decision to seek a second legal opinion, implying that the administration engaged in opinion-shopping.

Former Prime Minister Dean Barrow expressed his support for the Special Select Committee, commending the social partners for their initiative. Barrow emphasized the importance of accountability and called for an inquiry to determine the reasons behind the events surrounding the agreement.

Regarding the alleged misunderstanding of the legal assignment by Ben Juratowitch, the attorney who provided the initial legal opinion, the current Prime Minister, John Briceño, stated that Juratowitch misinterpreted the request. Briceño clarified that a second legal opinion was sought from Senior Counsel Douglas Mendes, who concluded that the Minister had the legal authority to sign the agreement. However, former Prime Minister Barrow expressed disagreement with Mendes' conclusions, particularly concerning Contreras's authority to sign the agreement.

Meanwhile, Tourism Minister Anthony Mahler and Minister of State Chris Coye have been tasked with renegotiating a new agreement that will offer more favorable terms for all parties involved. Mahler clarified that the previous Definitive Agreement had been discarded, and a new piece of legislation was being considered to provide a transparent and accountable framework for such investments. Mahler also noted that the project partners expressed a willingness to tear up the previous agreement.

The investigation by the Senate Select Committee, along with the development of new legislation, aims to address the concerns surrounding the Definitive Agreement and ensure a more transparent and fair process for future investments in Belize's tourism sector.