BELIZE: MINISTER OF NATURAL RESOURCES ON LAND TITLES AND

UNCLAS BELMOPAN 000505

SENSITIVE

SIPDIS

FOR WHA/CEN - ROIS BEAL, DAVID WOLFE

E.O. 12958: N/A
TAGS: PGOV PREL EPET BH
SUBJECT: BELIZE: MINISTER OF NATURAL RESOURCES ON LAND TITLES AND
OIL LEASES


1. (SBU) Summary: Charge and POLOFF met with Deputy Prime Minister
and Minister of Natural Resources Gaspar Vega on December 3, 2008.
Vega said he was working hard to eliminate the backlog of over 5,000
land transfer and title cases inherited from the previous
government. He estimated it will take two years to clear these old
cases while keeping up with current ministry services. He discussed
his strategy to settle the dispute over leases for two oil
exploration blocks that has carried forward from the previous
government. Vega also noted that his United Democratic Party (UDP),
after ten months in power, was doing well. End Summary.


2. (SBU) Charge and POLOFF met with Deputy Prime Minister and
Minister of Natural Resources Gaspar Vega on December 3, 2008. On
the way into his office we noted that the waiting room and hallway
were full of people, many of them waiting to talk to Vega about
resolving their land title difficulties. Vega was friendly and
noted that three of his children were born in the United States.


3. (SBU) Land Tenure: Vega indicated that since he took office in
February 2008 he has been working to eliminate the backlog of over
5,000 land transfer and land title cases carried over from the
Peoples United Party (PUP) administration. He estimated it will
take two years to process these cases at the current pace while
keeping up with new cases as they come in. These efforts are slowed
down by Vega's requirement that land transfers from the GOB in the
last year or so of the PUP administration be audited. He said there
have been several public announcements made asking purchasers to
contact the Lands Commissioner to show receipts for payment or to
pay the GOB for lands they wish to have transferred. Note: The GOB
will sell a small parcel of land to any Belizean citizen, on a
one-time basis, at a price well under the market. End Note. Vega
said the audits were needed to restore his confidence after he found
many anomalies in the previous government's transfer of land and
collection of fees. In some cases, the land contracts may be
cancelled if purchasers do not appear at the Ministry or show valid
payment receipts. He suggested that Americans who are having
problems obtaining or transferring title in the lands registry
should contact the Minister directly.


4. (SBU) Oil Exploration Leases: Charge raised the general issue
of transparency in bidding for leases on oil exploration blocks and
the specific case of the American firm, Lagoon Resources', bid on
one lease block. During the PUP administration, tenders were let
for leases on two exploration blocks and awarded in secret to two
firms with ties to the PUP at prices lower than those bid by Lagoon
Resources. Vega indicated that his administration (UDP) should have
gone public with the information when they discovered there were two
signed contracts for the disputed blocks. After the terms were
revealed in the press, the GOB verbally re-negotiated with the lease
holders, who then agreed to sign contracts amended to reflect higher
(more advantageous to the GOB) rates. However, when Vega received
the new contracts for his signature he found that his own ministry
officials had inserted the lower rates. He immediately pulled the
contracts and told the other parties he would only sign contracts at
the higher rate that had been verbally agreed. Vega and the Prime
Minister agree that if the two firms would not take the leases at
the higher terms, the GOB would go public with the details of the
affair and would offer the blocks for tender again. While this
resolution would not help Lagoon Resources this time around, Vega
assured the Charge that going forward he would ensure the tendering
process would be carried out transparently.


5. (SBU) UDP Performance: Vega opined that the UDP was doing well
since coming to power in February 2008. At a recent UDP convention
in his district (Orange Walk) he noted greater turnout than ever
before. He also said the UDP convention was better attended than
the recent PUP convention despite Orange Walk being a former PUP
stronghold.


6. (SBU) Comment: Vega is a successful business man who has
entered government for the first time. He is aware that there is
corruption in his ministry and said that although he would like to
make a clean sweep, it would effectively shut down the ministry
while new people learned their jobs. He is making changes
selectively and looking carefully at everything he signs. We wish
him well. End comment.

DIFFILY