By: Omar Silva, NP Staff Writer

Belize City: Monday, 28th February 2023

The cruise port projects in Belize have been the center of attention as two principal companies, Stake Bank and Portico, engage in a war of words. The back-and-forth through press releases has revealed the intricacies of the agreements struck with the government. The dispute centers around the existence of a Definitive Agreement between the Barrow administration and Port of Magical Belize/Portico.

Former Attorney General Michael Peyrefitte has categorically stated that there was no Definitive Agreement recommended by the investment committee, approved by cabinet, or vetted by the AG’s office between the Barrow administration and Portico. However, in response, Chief Executive Officer of Stake Bank Enterprise Limited, David Gegg, pointed to the work done by the law firm of Micheal Peyrefitte in February 2020, for the purpose of drafting the same definitive agreement that is in question. Gegg also mentioned that someone connected to the Stake Bank development project used Peyrefitte’s letter and went on a libelous and defamatory rant against Portico and himself.

Stake Bank has now issued a statement expressing extreme disappointment over the recent disclosure of the existence of a Definitive Agreement issued to Portico Enterprise Limited by a former United Democratic Party minister which is being classified as fraudulent since it did not have the recommendation of the Government’s Cabinet Sub-Committee on Investment and subsequent approval of the government. The company says that the revelation is detrimental to its investment and that it is a reflection of the irresponsible approach that the Government of Belize is taking with the cruise industry.

The release from Stake Bank further notes that Portico Enterprise Limited is obligated to disclose this document because taxpayers' funds are at stake via the concessions contained in such an agreement. It also argues that the fraudulent Definitive Agreement is being used to dupe the cruise lines that the government supports Portico Enterprise Limited’s project, when this is furthest from the truth. Stake Bank believes that with this agreement, Portico has seriously damaged its business model and elevated its financing cost. It is seeking a legal opinion on whether the Portico Agreement and the Minister who signed the agreement are on the hook for damages due to misrepresentation and fraud.

The Royal Caribbean Group had written to David Gegg and Boskalis International indicating that it had decided to back and partner with Portico Enterprises Limited on the Port of Magical Belize. Stake Bank argues that once this policy is in place, it makes clear that there can be only one cruise port and one cargo port for the Belize District at this time. The situation remains challenging, particularly as to what happens next, but any additional development will be shared with the public.

Interestingly, when the current Prime Minister, John Briceño, was the Leader of the Opposition in 2017, he expressed the PUP’s support of the Stake Bank Project. However, the government has been taken to the Supreme Court by Stake Bank, which believes that the environmental clearance given by the current administration in March 2021 had procedural flaws.

In conclusion, the war of words between Stake Bank and Portico over the Definitive Agreement continues, with both sides vehemently defending their positions. The situation remains complex, and any further developments will be closely monitored and shared with the public.