On Monday, we reported on an application being filed on behalf of Stake Bank Enterprise Limited in which the company is seeking to recover almost three point nine million dollars in assets from businessman Michael Feinstein, the former principal of the company that is presently in receivership. Earlier today, the Feinstein Group issued a statement in which it is requesting the appointment of an independent inspector for an investigation into the Atlantic Bank Limited. The statement goes on to read, “the Feinstein Group hereby formally requests that the Governor of the Central Bank of Belize, Kareem Michael, designate an independent inspector or team of inspectors in accordance with a set of publicly disclosed terms of reference to conduct the ongoing investigation into Atlantic Bank Limited regarding alleged violations of Belize’s banking regulations”. In a statement issued by receiver Marlowe Neal this evening, he responded to several statements that have been made by the Feinstein Group. Neal is on record stating that the original project cost present to the lenders was eighty million US dollars. He says that under Feinstein’s stewardship, the company exceeded that estimate by roughly forty million US dollars. Elsewhere in the statement, Neal says, “SBEL has been saddled with over one hundred and fourteen million dollars in debt, with no income to repay either interest or principal. The title to the land surrounding the island is the subject of fraud. The buildings, pier and dredging are incomplete. And the project, by some estimates, will require another seventy million US dollars for basic completion”.
Category: Law
250 Students Graduate from Belize’s PEACE Program
Today, two hundred and fifty students graduated from the Positive Engagement and Civic Education Program, PEACE. This program was launched in October 2023 with the goal of reducing the number of adolescent arrests made in the country. It caters to children living under challenging circumstances or those that require supplementary support and guidance. PEACE was piloted in ten schools within the Belize District and will be implemented in other districts in the second phase of the program. Here’s News Five’s Britney Gordon with more on today’s ceremony.
Britney Gordon, Reporting
For several years, Belize has used GREAT, which is the Gang Resistance Education and Training, to take early action against gang activity among youths. In September 2023, the American-based curriculum was phased out in Belize and replaced by the Positive Engagement and Civic Education Program, PEACE. While this initiative is still supported by the US Embassy, it was designed to cater to the challenges specifically encountered by Belizean youths. It seeks to target majority of the sixty thousand students across the country. Today, an award ceremony was held for the ten schools that participated in the first phase. Assistant Commissioner of Police, Howell Gillett gave us some more details on the ceremony.
Howell Gillett, Asst. Commissioner of Police
“Today we are having a graduation certification program. It’s for two hundred fifty children from ten schools within the Middle East District. The total number of children who will be graduating over a longer period will be just over eight hundred. But for logistical purposes, we’re only doing a sample from each school. So it’s twenty-five from each school, which brings us to two hundred fifty young people. So these young people, they’re from middle and upper primary. It’s during their formative ages.”
Gillett explained that while the GREAT program was a strong initiative, it was not the right fit for Belize. PEACE caters to the problems that Belizean children face. He said that there are sixty thousand children across Belize that the program seeks to influence.
“We will try our very best to reach to them because the program is strategic, it’s evidence based and we may never need to make an arrest if we properly and in time work with young people to remain positive. So it deals with bullying, making right decisions, how to resist gangs and all the other areas that we, and it’s tailored for beliefs. The GREAT program was a more U.S. based program. This one is tailored solely for, um, police. It’s in its pilot phase in the ten schools. Come September, we will launch it across the country. And that’s why I told you earlier that thirty-three officers were trained over a period of time. And these officers will now go into the classrooms come September in other parts of the country.”
Heath Bailey, Chief of the International Narcotics and Law Enforcement Unit of the U.S. Embassy, explained that although the GREAT program was phased out, the U.S. Embassy is an avid supporter of the PEACE initiative.
Heath Bailey, Chief, International Narcotics & Law Enforcement Unit, U.S. Embassy
“So this this initiative, the PEACE Program is a partnership between the U.S. Embassy through the Central America Regional Security Initiative, an initiative we call CARSI. Belize Police Department, as well as the Ministry of Education to develop a Belize specific program to help these kids understand alternative dispute mechanisms and to reduce conflict, reduce gang involvement and bullying. And we’re really proud and happy to be able to support them.”
Heath Bailey
“I think the reason why this program is effective and why the kids enjoy it so much is because it is built for Belize. There have been other programs that Belize has implemented before, anti gang programs that have been more general but the genius of this program really is that the Belize curriculum developers were able to tailor it to the needs of the country. So yeah, I do, I think it’s quite effective.”
He attributed the success to the police officers who were able to engage and form meaningful relationships with the participants as their instructors.
“We been able to meet some of the instructors, some of the police officers who have implemented the program. And part of the effectiveness is that they’re really great. They’re really engaging, and they’ve developed relationships with these kids and I think that’s really key.”
The program ran over a six-month period, targeting one school for an hour each week. Participants included children in the middle and upper divisions from standards two to six. We spoke with Standard six student, Brooklyn Jerrylee Casanova, of Saint Luke’s Methodist, to hear her takeaway from the experience.
Brooklyn Jerrylee Casanova, STD 6 student, St. Luke’s Methodist Primary School
“I participated in many activities such as like scenarios, role playing, answering questions, and just overall communicating with everyone and having a fun time.”
Britney Gordon
“What do you feel like you’ve learned from this program?”
Brooklyn Jerrylee Cassanova
“I’ve learned on many dangers and ways to avoid them, ways to help someone, be it helping another to be in a better place and to understand everything that is going on with their situation.”
Britney Gordon for News Five.
Law Enforcement Authorities Boost Presence Up North
Last week, the cartel warfare reached new levels in Quintana Roo, Mexico and it created a sense of insecurity for some Belizeans who travel there frequently. To discourage the increase in cartel activity along the northern border, Belizean law enforcement authorities have also enhanced their presence on the Belizean side of that border. Today, Commissioner of Police, Chester Williams explained that the operations span the northern districts, particularly along the riverbank. And in response to a suggestion by the Leader of the Opposition, Moses Shyne Barrow, Williams explained why civil society cannot be included in the process.
Chester Williams, Commissioner of Police
“We have certainly stepped up our presence in the area. I did a tour of the area over the weekend. I made several observations and I will be putting my observations into a document and submit to Cabinet with recommendations in terms of what additional. Efforts I think that we can put into the area to enhance the level of security for our people so there is where we are right now. This is a very highly sensitive operation that we’re conducting and because of the nature of the operations, we cannot include NGOs or persons who are not a part of the security apparatus in the planning for several reasons. One may also has to do with the security of those people. Because once people get to understand who are parties to a plan against them, then they become a target. And so we would not do that. And likewise, to be able to ensure confidentiality in terms of how the operations is going to be executed. Again, there has to be confidentiality because the security of our troops on the ground is important. This is a very highly sensitive operation that we’re conducting and because of the nature of the operations, we cannot include NGOs or persons who are not a part of the security apparatus in the planning for several reasons. One may also has to do with the security of those people. Because once people get to understand who are parties to a plan against them, then they become a target. And so we would not do that. And likewise, to be able to ensure confidentiality in terms of how the operations is going to be executed. Again, there has to be confidentiality because the security of our troops on the ground is important.”
ComPol Says Government Supports Police Effort in the North
Williams said that contrary to Barrow’s comment that the government has done little to address the issue in the north, the Prime Minister and the relevant ministries have been receptive and have supported the police in the effort and that they have always done so.
Chester Williams, Commissioner of Police
“We remain in constant communication with our Mexican counterparts. And again, I must say, I must commend our Prime Minister and the Minister of Home Affairs and the Minister of Defense for the input that they have been putting into this operation and the support. I can say that whenever we approach the Prime Minister for equipment or resources to be able to carry out our mandate, the Prime Minister is always willing to assist. Likewise, Minister Marin and Minister Musa have been with us in on the frontline. We met, we discussed the issues and we planned in terms of how we’re going to execute and we’re doing just that.”
Stake Bank Sues Mike Feinstein for Recovery of Company Assets
Stake Bank Enterprises Limited, presently in receivership, is suing businessman Michael Feinstein, a director of the company. A notice of application for interim injunction was filed in the High Court on May first. The injunction is being sought to restrain Feinstein, or his agents, from transferring titles to a little over twenty-three acres of reclaimed land, an extension of Stake Bank Island. The application also seeks to restrain Feinstein from transferring other assets, including machinery and equipment belonging to the company. Those assets include a 2023 Toyota Land Cruiser, a Beech King aircraft valued at one point five million dollars, and a list of other items with a combined value of three point eight million dollars.
The Importance of Evidence Gathering and Prosecution
Earlier this week in the High Court, two men were acquitted of a charge of murder due to a lack of evidence. Their release has raised questions regarding evidence gathering and the use of supporting proof to successfully prosecute suspects. Commissioner of Police Chester Williams weighed in from a law enforcement perspective.
Chester Williams, Commissioner of Police
“When the police do arrest and charge someone, we may have sufficient to arrest and where there is some evidence and we believe that we can put that matter before the court then we do so. We’re not going to be the ones to say that the evidence is insufficient. The court may look at a situation differently and may or may not convict. At the end of the day, we feel good that we did what we could have with the evidence we have and respect the outcome of the courts. I can say that unlike before, you’re not hearing much instances where accused murderers are walking. We have had a number of convictions for murders over the past few months or even years and we are hoping that that trend is going to continue.”
LPG Companies Now Free to Import Following Court Ruling
There has been a shift in Belize’s liquified petroleum gas landscape yet again. Viewers may recall that back in 2019, the Government of Belize passed the National Liquified Gas Project Act in tandem with the establishment of National Gas Company Limited. Long-established LPG dealers were technically boxed out from the wholesale business and relegated to selling LPG on the retail market. As a result, Gas Tomza Limited, Western Gas Company Limited, Southern Choice Butane and Belize Western Energy Limited took the Government of Belize to court for breach of their constitutional right to property. In 2022, the High Court ordered the government to pay more than ten million dollars in compensation to the companies for damages. But what those companies truly wanted was for the law to be struck out so that they could resume importing LPG. Well, the matter was taken to the Court of Appeals and the four companies were successful in having that aspect of the legislation repealed. The group of companies was represented by four attorneys, including Senior Counsel Godfrey Smith, who spoke with us today about this latest ruling.
Godfrey Smith S.C., Attorney-at-law
“The upshot of the judgement, perhaps three takeaways, one that the National Liquified Petroleum Gas Project Act, passed by the government in 2019 and amended in 2021 has been ruled by the Court of Appeal to be in breach of Gas Tomza and the other gas companies, of their right to property and their right to work. That is two. The third important take away is that requirement in the amendment to the law that says if you want to import LPG into Belize you must have storage facility of a minimum of one point five million U.S gallons to be able to get permission to import LPG. The governments attempted to say well we are not breaching anybody’s rights because you are free providing you build a storage facility of one point five million, clearly the argument was that was impractical, impossible and cant be reached and it effectively stimies your right to work, your right to freely be an importer of LPG and the court upheld that. So, as it stands therefore based on our interpretation of the judgment, Gas Tomza and the other litigants would now be free to build a storage capacity within their economic cost, within their reach that they are able to build and apply for permission to bring in LPG.”
Compensation Sum for LPG Companies Back in High Court for Deliberation
As for the ten-million-dollar compensation for damages awarded to the group of LPG companies, attorney Smith says the Court of Appeal has ordered that the High Court further assesses the sum. And though the LPG companies are free to exercise their right to import, there is no guarantee that they will be able to acquire the necessary permits from the Government of Belize.
Godfrey Smith S.C., Attorney-at-law
“There is also the matter of compensation for the breach of their rights, which the Court of Appeal ordered sent back to the High Court to be assessed. I should point out for completeness that the gas companies, Gas Tomza, Western Energies and the others also argued that other fundamental rights were breached like the rights to freedom of association and equality of law. The Court of Appeal said no, those were not breached, and the ten million dollars awarded by the High Court, the Court of Appeal found there was not sufficient evidence, so damages have to be reassessed, meaning done over. I think if I was to attempt to distill it into one significant thing, it is that requirement, that onerous, impossible requirement of having to have a storage facility of one point five million U.S gallons to be able to import LPG has been deleted form the law.”
Reporter
“Your clients are now free to exercise their business rights.”
Godfrey Smith
“Assuming there is no appeal.”
Reporter
“But, will they get, are they assured of getting a permit. I know the court cannot order an authority, but they still don’t have a permit to sell wholesale LPG in Belize.”
Godfrey Smith
“They will have to apply. I think one of them went out of business, Southern Choice Butane, there were four claimants at the very beginning s of the case. One went out of business. If the three wish to continue in the business of importing LPG, they will have to apply and the government can deny a permit, but it cannot be for any oppressive reason, it has to be for a good reason, especially because these companies were in the business before for many years.”
Central Bank Looks into Allegations Against ABL
Last Monday, the attorney for Michael Feinstein, Godfrey Smith, wrote to the Governor of the Central Bank of Belize requesting an investigation of Atlantic Bank Limited. The allegation was that ABL committed, “serial breaches of the Domestic Banks and Financial Institutions Act”. The letter noted that ABL approved and disbursed over sixty million dollars in loan funds to Stake Bank Enterprise Limited using monies belonging to depositors, as well as the pension funds of employees working at Atlantic Bank Limited. The letter asserts that this was done without ensuring that adequate security was put in place at the onset. These were among the numerous allegations raised against ABL in the letter. Today, when reporters caught up with Smith, he said that the Central Bank of Belize has assured him that they are looking into the allegations.
Godfrey Smith S.C., Attorney-at-law
“As I understand it the Central Bank is looking into the matter.”
Reporter
“They have acknowledged the receipt of the letter?”
Godfrey Smith
“Yes, they have.”
Reporter
“But in terms of processes, what do you expect next? Have they given a timeline or do you expect that by a specific time?”
Godfrey Smith
“No, I do not know of a timeline, but I understand the matter is being taken seriously and being examined.”
Reporter
“How do you proceed, will Feinstein give the bank a certain time, let us say three months and then take them to court?”
Godfrey Smith
“Well I don’t think we are there yet. As I said, I think the Central Bank of Belize is taking the matter absolutely seriously and looking at the allegations, as it should, as it is obliged to do and as it is doing as far as I am aware.”
“Sentencing Guideline for Selgado was not Appropriate”
Before the case was adjourned, Justice Pilgrim shared with Selgado a copy of a sentencing guideline from another country on attempted murder, explaining that he had not seen a sentencing guideline for this region that he could share. Selgado noted upon receipt of the guideline that it was for attempted murder, to which the judge explained that only the relevant portions of the guidelines could apply, such as aggravating factors and mitigating factors. But Saldivar did not agree that the guideline was appropriate to share, and he explained why.
Arthur Saldivar, Attorney for Oscar Selgado
“I don’t see guidelines pertaining to attempt murders being adequate in this circumstance. From my understanding of the facts, the virtual complainant was under no threat of life at any time. A third party made claims that at the end of the day, the court accepted and convicted on, but the virtual complainant herself, no attempts were made on her. That would be a mitigating factor – a major mitigating factor – that the virtual complainant was never under threat, never perceived any threat. And I think another mitigating factor would be that the judge himself believed what Mr. Ramirez said, in that he never intended to do anything in respect of the murder, okay. So, if the judge does not believe that Mr. Ramirez was going to do anything and the virtual complainant herself was under no threat, I don’t see what more mitigating factor than that one would need. The no convicted is saying that an error was made in law and that error in law in fact, may very well result in him being exonerated. So until then, I would not want to speak with any finality on any findings that was made in this instant matter.”