In a press release on Tuesday evening, the Briceño Administration said that the Commission of Inquiry into the sugarcane industry is set to proceed.” The statement came after the Belize Sugar Cane Farmers Association (BSCFA) called a press conference at its headquarters in Orange Walk Town regarding the promised Commission of Inquiry.
During the press conference, Alfredo Ortega, Vice-Chairman, B.S.C.F.A., said “As you can see we have reached March and the signing of the document was in January. Thirty days was in February. So we have long past due that. Now that we have reached this stage and we have listened, because first we were waiting for the government or the prime minister to declare, because he said in his interview on Friday that he is the one in charge to declare the commission of inquiry.”
BSCFA Vice Chairman, Alfredo Ortega
He further stated that “We were waiting for that, but when we listened to what he said on Friday we can clearly say he lied to us, he lied to the cane farmers and that is why we are here. We want to clearly see how the prime minister behaves, lying to the cane farmers, lying to us, lying to the Belizean people in his statements, he said that we are not the only association.”
In its press release, the government said, “Today, Prime Minister Hon. John Briceño approved the terms of reference as well as the appointment of the commissioners to the inquiry into the sugarcane industry of Belize.”
It said “The commission is expected to review the entire value chain of the sugarcane industry to establish the benchmark costs, determine efficiencies and recommend measures to increase efficiencies. Specifically, the commission is to determine the cost of sugarcane farming, harvesting and transporting, as well as sugar manufacturing, operating, transportation and logistics costs.”
Maximo Chan was knocked down and killed this morning in Guinea Grass Village, Orange Walk District. Witnesses say that Chan was about to board a bus when a vehicle stuck him down. He was rushed to the Northern Regional Hospital, where he died.
The latest incident has villagers demanding that speed bumps be placed on the Guinea Grass Road. One person wrote on Facebook, “The village council needs to do better, as bumps are urgently needed in the village. People drive within the village like it’s a free way.”
Another wrote, “How many more people have to die so they can put pedestrian ramps up? How many more children have to be run over by drivers who do not respect the speed limit in the village?”
The Belize Sugar Cane Farmers Association (BSCFA) is hosting a press conference at its headquarters in Orange Walk Town. The BSCFA says the purpose of the press conference is to respond to statements made by the Prime Minister in the media last Friday regarding a court ruling on the Sugar Industry (Licence to Import/Export Sugar) Regulations 2023.
On February 29, 2024, High Court Judge Rajiv Gooretilleke delivered a judgement on a claim filed by Belize Sugar Industries Limited (BSI) and Corozal Sugar Cane Producers Associations (CSCPA) on May 23, 2023 against the Attorney General of Belize, the Minister of Agriculture, the Sugar Industry Control Board, and the Controller of Supplies.
Executive Members of the BSCFA
BSCFA says that the Prime Minister’s admission that he wasn’t surprised by the ruling and his assurance of necessary amendments is incredulous. ” His outright capitulation to BSI continues to leave the small cane farmers at the mercy of the financial power and influence of the multinationals, BSI and TLS.”
“Equally appalling are the statements of the Prime Minister regarding the Commission of Inquiry (COI). The Prime Minister states that he heads the COI, that he is the one who has responsibility for the COI, and that it is his responsibility to ensure that there are proper consultations by everyone.”
As we reported on Tuesday, the Belize Chamber of Commerce and Industry, B.C.C.I., has written to the Prime Minister, sharing its view that there need not be a Commission of Inquiry to delve into the private and sensitive business information of the Belize Sugar Industries Limited. The chamber was in agreement with B.S.I.’s attorney, Senior Counsel Godfrey Smith, that such an inquiry would be invasive. The chamber’s Chief Policy Analyst, Joshua Pott shared with News Five that there are other ways to sort out a dispute of that nature between two entities.
Joshua Pott, Chief Policy Analyst, B.C.C.I.
“The parts of the Commission of Inquiry that deal with looking into the commercial dispute between the B.S.I and the B.S.C.F.A is not necessarily for the realm of the Commission of Inquiry. I think the other thing that needs to be understood is that what’s going on between the B.S.C.F.A. and the B.S.I is really a commercial dispute between two private entities. They’re both private sector entities. As a matter of fact, they’re both members of the Chamber of Commerce. Their welfare is equally as important to us. Where a commercial dispute exists, there are mechanisms to deal with it. The parties can resort to a variety of alternative dispute-resolution mechanisms. Those things exist and we feel at the Chamber of Commerce that’s the better route for resolving the commercial dispute between these parties than having a commission of inquiry look into it.”
Last Friday, you heard from attorney for the American Sugar Refinery/Belize Sugar Industries Limited, Senior Counsel Godfrey Smith, who explained a court ruling that came against the government. It was the case of the Belize Sugar Industries Limited and the Corozal Sugar Cane Producers Association against the Attorney General, the Sugar Industry Control Board, the Minister of Agriculture and the Controller of Supplies. The claimants had filed an injunction to have the amended Sugar Industry Import/Export Regulation that was introduced in May of 2023 halted. And the court agreed with the basis of their argument: that the implications of the document, were it effected, would have been unreasonably invasive to the company. When he met with reporters, Smith also said that his view is that the Commission of Inquiry that the government has planned for B.S.I. would also unfairly delve into the company’s sensitive material that it has a right to keep private. And the Belize Chamber of Commerce and Industry, B.C.C.I. has weighed in on that Commission of Inquiry as well. In a letter addressed to Prime Minister John Briceño, President of the Chamber, Marcello Blake writes about the Chamber’s concern that the Inquiry would investigate the commercial arrangements between two private sector entities. Blake wrote that the government’s intention to conduct the inquiry indicated that the Commission would be convened to examine the modernization of the sugar industry and improve its viability. While the Chamber agrees that there is a need to modernize the sugar industry’s practices, it is of the view that any provision in the Commission’s Terms of Reference to empower it to investigate commercial arrangements between private entities risks setting an undesirable precedent. Quoting in part from Blake’s letter, it states, “Such an action may be seen as an overreach of executive power and is likely to impact any gains made in improving Belize’s viability as an investment destination. Furthermore, the practice of using public resources to resolve commercial disputes involving private entities is not sustainable and parties in dispute must be facilitated to settle using available mechanisms”. The letter ends by suggesting alternative dispute resolution mechanisms as the best methods to resolve commercial disputes fairly and that parties to any commercial dispute should be encouraged to pursue this route.
Earlier this week, the High Court handed down a judgment in the case of Belize Sugar Industries Limited and the Corozal Sugar Cane Producers Association against the Attorney General, the Sugar Industry Control Board, the Minister of Agriculture and the Controller of Supplies. This was in direct relation to a claim that the two entities had successfully presented after having filed for an injunction. That injunction was to have the amended Sugar Industry Import/Export Regulation, or a Statutory Instrument that was introduced in May of 2023 halted. Senior Counsel Godfrey Smith, on behalf of the claimant, held a press conference today to share the implications of the regulation had it been passed. Essentially, the court found that the regulation was unconstitutional, that it breached the claimants’ right to work, to privacy, to protection of law. News Five’s Marion Ali filed this report.
Godfrey Smith
Godfrey Smith, S.C., Attorney for A.S.R/B.S.I./C.S.C.P.A.
“The court struck down, in fact, it characterized portions of the regulations as obnoxious, saying that it did interfere with BSI’s right to information and privacy, that the regulations would interfere with BSI’s right to work, and it would interfere with its right to protection of the law, because it amounted to an overreach. The effect of the finding is that the government has used its legislative power in an invasive way, in a way that breach people’s, that the BSI’s right to its confidentiality and privacy of its commercial information.”
Marion Ali, Reporting
The Constitution of Belize allows the government to formulate regulations that interfere with a company’s rights, but it must be for the greater good of the people. And, even though the sugar industry is one of Belize’s income earners, the court found that the regulation was the equivalent of an abuse of power. Senior Counsel, Godfrey Smith explained the crux of the matter with one of the sections he argued against.
Godfrey Smith
“The Sugar Industry Act and the Supplies Control Act already regulated export of sugar in Belize. All of a sudden, in 2023, the Sugar Industry Control Board and the Minister of Agriculture promulgated, brought into law, a new set of regulations that had at its core two fundamental things. 01:5The first is a requirement that if BSI wished to get a license to export sugar or to manufacture sugar, it had to disclose all contracts – all – to the S.I.C.B, Mr. Osorio and his group with all of its clients internationally. It also had to do that each time it applies for a shipping permit. There’s a requirement that each time you want to export sugar for each batch you have to apply for a shipping permit and if you haven’t made those disclosures you will not get a permit or you will not get your license or your export license can be revoked.”
Smith explained that the regulation also sought to impose on BSI a requirement to collect from Tate and Lyle in London any Fair Trade premium for sugar due and paid to associations. This is a matter that the claimants argued had nothing to do with them. The basis on which the claimants put forth their case was that the regulation was crafted so as to delve into B.S.I’s private commercial affairs and to force B.S.I to do the impossible – to pay Fair Trade premiums, which are not paid by them, but by the London-based company Tate and Lyle. Smith shared his candid view that the government abused its authority when it formulated the regulation.
Godfrey Smith
“That piece of regulation was a clear, naked attempt by S.I.C.B – Sugar Industry Control Board and the Ministry of Agriculture to strong-arm BSI and force them to do what the law doesn’t allow. So, because the disputes have been ongoing and the government obviously must favor the cane farmers because they represent thousands of voters in the industry, it will never be a case where any government, red or blue, will ever side with a commercial entity, a multinational B.S.I./A.S.R, because they know where the votes are. And for that reason, they were prepared to use their sovereign legislative power in a heavy-handed, hand-fisted way to compel something like that. They were not entitled to compel. It was an abuse of authority. Nobody says you can’t regulate to assist here and there if you believe there is unfairness. But that is why there is a Constitution, which is the yardstick against which you gauge whether a particular piece of regulation or law has gone overboard. So you can’t use force.”
Smith pointed to the fact that a cane farmers association would join A.S.R./B.S.I on the claim is in itself an indication that the association did not trust the intention with which the regulation was drafted.
Godfrey Smith
“One of the cane farmers associations themselves – the Corozal Sugarcane Producers Association – I miss that, I overlooked that point. It’s an important point because they felt the actions of the government with this heavy-handed piece of legislation could mash up the industry and they would be at a loss if whatever draconian penalty is imposed on BSI for failure to comply with these excessive regulations – could mash up the industry – could hurt BSI, but if BSI is hurt, down would go the other associations. So that’s why they joined in that claim.”
The regulation can still be passed, but without the sections that the court found to be unduly unreasonable, which would make the regulation ineffective in what it seeks to do. The defendants have twenty-one days within which to file an appeal of the ruling. Marion Ali for News Five.
In March 2023, the Government of Belize announced its decision to launch a Commission of Inquiry with the explanation that it was to modernize the sugar industry. The decision came after the Belize Sugar Cane Farmers Association and A.S.R/B.S.I made presentations to the government. While the B.S.C.F.A has welcomed the idea of the inquiry, the other party hasn’t. Today, the attorney for A.S.R/B.S.I., Senior Counsel Godfrey Smith, told reporters that he views the Commission of Inquiry as having the same over-reaching purpose and intent as the amended Sugar Industry Import/Export Regulation.
Godfrey Smith, S.C., Attorney for B.S.I
“I view this intended Commission of Inquiry in almost the same vein as the just struck down regulation. The regulations claim to be innocuous, simple regulations for regulating industry. In reality, it was a disguise to cover an attempt for digging to be a size business, we say. Similarly, it has my beliefs, and I stand to be corrected when I see the final truth. of reference that the purpose of that commission of inquiry will be for the same thing to dig into BSI’s guts, get it to produce all its sensitive commercial information for one purpose and one purpose only, which is to aid the BSEFA in its commercial dispute with BSI. And that would be a wholly inappropriate, wrongheaded and improper use of the power to issue of a commission of inquiry. BSI is a private commercial entity and the cane farmers associations, each of them – this isn’t a public association. These are – it’s owned by the cane farmers. They work their plot of land, the money they get goes into their pockets. It doesn’t go into any consolidated revenue fund or any public fund that would require the government to say, look, this is a deeply-public problem, and therefore, a commission of inquiry is necessary. So it’s going to be, in my view, an attempt to get at what it can’t otherwise get at. And if that is the case, then certainly I would be advising BSI that it must challenge the issuance of that commission of inquiry immediately as it is issued.”{
The Belize Sugar Cane Farmers Association is demanding that the Briceño administration fast-track the work of the sugar industry’s commission of inquiry. The agreed deadline for the commission to be established and its investigation to commence has passed. Well, Prime Minister John Briceño says he has already explained the hold up to the B.S.C.F.A. Here is what he told us.
Prime Minister John Briceño
Prime Minister John Briceño
“I think the BSCFA if they and I have explained it to them, if they want to be fair, they would understand why it has not happened. It so happened that when the terms of the commission was presented, the minister in his haste to try to get this done quickly, there was not consultations with BSI and the three other associations. There were only consultations with the BSCFA. So the commission of inquiry is headed by the prime minister. It is my responsibility to ensure there are proper consultations by everyone. If you do not have proper consultations then you could have one of the associations or BSI not participate and if they do not participate then it is going to be a waste of time and money. We have contacted the two persons from Brazil that has done similar work in El Salvador and we are in the process of being able to sign a contract with them to be able to work with the other two person that are coming in. So we are working on that. It is of no use to call the commission of inquiry and nobody participates. It is a waste of time.”
We received a brief statement from the prime minister on the High Court’s ruling in relation to the Sugar Import/ Export Regulations. Prime Minister Briceño says he is not surprised by the ruling. He added that the government will adhere to the court’s decision.
Prime Minister John Briceño
“I have not gotten a chance to read the report, but to be honest with you I am not surprised. And that was some of the concerns we raised. And so, we will follow the law and if the law says it is unconstitutional then we will make the necessary amends.”
In Sugar City, returning Mayor Ladrick Sheppard and his team of six town councilors are back in office. Here’s correspondent Dalila Ical with that story from Orange Walk.
