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Mar 3, 2017

More Woes for G.O.B., Glenn D. Holds Them Off in Intelco Appeal

Aside from superbond payments, government is facing another multimillion dollar payment.  Glenn D. Godfrey’s GDG Acquisitions LLC has had a judgment of ten million dollars plus in its favour against the Government of Belize upheld by a U.S. Court of Appeal.  The Eleventh Circuit Court of Appeal, with jurisdiction in Georgia, Alabama and Florida, upheld the decision of the U.S. Court for the Southern District of Florida in relation to Godfrey’s INTELCO leasing telecommunication equipment to the government years ago. The Appeal Court had previously sent back Godfrey’s appeal for the lower court to consider the enforceability of the contract based on one clause. This time, it refused the Government’s appeal of the district court’s subsequent denial of its motion to dismiss the claim. The Court’s decision states, “The Government of Belize claims that the express waiver of sovereign immunity contained in the contract was ineffectual because its Minister of Budget Management, [Ralph Fonseca], who negotiated and signed the contract on its behalf, lacked the authority to waive sovereign immunity. But despite the Minister’s claimed lack of authority to bind Belize, the Government ratified Fonseca’s actions by fully performing its contract obligations during the lease term and paying approximately thirteen point five million dollars in forty separate payments over a period of nearly six years and spanning two different administrations.” The court found that the Government’s conduct therefore intended it to be bound by the contract. As a result, it affirmed the district court’s denial of the Government’s motion to dismiss. Fonseca and Godfrey, a former attorney general of Belize travelled to Miami to close the deal in 2002. The decision notes, “all rents due under the Master Lease Agreement were evidenced by promissory notes delivered by the Government to INTELCO. The financing was supported by the International Bank of Miami.”

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