BELIZE, A RETURN TO THE PAST?

C O N F I D E N T I A L BELMOPAN 000388

SIPDIS

WHA/CEN (ROIS BEAL)

E.O. 12958: DECL: 08/29/2018
TAGS: PREL PGOV BH
SUBJECT: BELIZE, A RETURN TO THE PAST?

Classified By: Ambassador Rober Dieter for reasons 1.4(b) and (d)

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Summary
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1. (C) Discussions of misappropriation and mismanagement in
the Ministry of Economic Development,s leading foreign trade
organization and allegations of ministerial level corruption
developed further last week. Today,s Cabinet meeting will
determine the outcome according to the CEO of the Ministry of
Economic Development. The Prime Minister,s actions should
be a strong indicator of whether he intends to follow through
on his campaign pledge to not tolerate corruption ) even in
his own party. End Summary.

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Background
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2. (C) BELTRAIDE, Belize,s Trade and Investment Development
Service, markets, coordinates, and assists in the development
of foreign investment in Belize - it is the face of Belize to
many foreign investors. For several months, BELTRAIDE,s
Board of Directors has requested from BELTRAIDE complete
accounting records and itemized receipts for significant and
unusual expenditures. The American Chamber of Commerce
(AmCham) is a member of the Board of Directors of BELTRAIDE.
The President of AmCham discovered background information
about the Executive Director of BELTRAIDE ) specifically her
bankruptcy records in the United States (she is also an
American citizen) that further added to the Board,s concerns
relating to large unsubstantiated expenditures under her
management. The Executive Director is a politically
appointed position and the incumbent is the aunt of the
Minister of Economic Development (EconDev) under which
Ministry BELTRAIDE falls.

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And the Minister too?
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3. (C) According to the President of the American Chamber of
Commerce, on Monday August 18, the Board of BELTRAIDE made a
collective decision to recommend removing the Executive
Director and forwarded the recommendation to the Cabinet. On
August 25, the Chairman of the Board of BELTRAIDE "resigned".
That same day, the President of AmCham was asked by an
official from the Ministry of EconDev to resign. He
submitted his resignation on August 27 after a discussion
with his long-time acquaintance, the Minister of National
Security. During that discussion, the Minister revealed that
the Board had not received full financials from BELTRAIDE
because those financials were being reviewed by the Cabinet
and showed 134,000 USD &missing8 from the BELTRAIDE account
since the new government took office in February. The
Minister also indicated that the Minister of EconDev possibly
had been spending BELTRAIDE,s money on unofficial travel.


4. (C) Econoff spoke to another BELTRAIDE Board member, an
AmCham Board member, and the CEO of the Ministry of EconDev
who all confirmed the Board,s issues of mismanagement by the
Executive Director. However, the conversation between the
AmCham President and the Minister of National Security
indicate the level of corruption may actually be higher up.
According to the CEO of EconDev, the Prime Minister will make
a final determination on the future management of BELTRAIDE,
at today,s Cabinet meeting. She appeared unaware of the
ministerial level issues during our meeting.

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Comment
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5. (C) A prominent malfeasance/mismanagement issue has
developed within BELTRAIDE that requires corrective action
and, if the Minister level conversations prove true, the
corrective action must be taken at a high level. Just this
past week, we have seen the resignation of a Senator after
chastising a fellow United Democratic Party (UDP) mayor about
alleged wrongdoing, the resignation of the Managing Director
of the Belize Agricultural Health Authority because she was
unwilling to terminate employees on the order of the Minister
of Agriculture, and the resignation of several Board members
of BELTRAIDE. These incidents show signs of division within
the UDP and signs of weakness to the public. The PM has made
it clear in the past that he will not tolerate corruption,
especially in his own party and has been promoting
legislative changes to allow for removal of corrupt
high-level officials. These recent examples offer him a
clear opportunity to demonstrate whether he means what he
says or whether his party will be on a &business as usual8
course similar to the former People,s United Party
government. Low-level rumors are leaning toward no action
taken at the higher levels. End Comment.
DIETER