CHIEF JUSTICE QUASHES CASE AGAINST FORMER PRIME MINISTER

UNCLAS BELMOPAN 000238

SIPDIS

DEPT FOR WHA/CEN (JENNIFER VANTRUMP)

E.O. 12958: N/A
TAGS: PGOV ECON PREL EFIN BH
SUBJECT: CHIEF JUSTICE QUASHES CASE AGAINST FORMER PRIME MINISTER

Ref: (A) 08 BELMOPAN 130, (B) 08 Belmopan 503,
(C) Belmopan 57, (D) Belmopan 96

1) Summary: In December 2007, the GoB received a US $20 million
grant from the Government of Venezuela, only $10 million of which
could be accounted for. When a new government was elected in
February 2008, they vowed to obtain a full accounting of the money,
which eventually led to the former Prime Minister and Minister of
Housing and Home Affairs being charged with its theft in December

2008. While a February 2009 ruling put the case against the former
PM on the docket of the Supreme Court, a March ruling dismissed the
charge against the former Minister of Housing. In June 2008, a
ruling by the Chief Justice threw out the charges against the former
PM, bringing the case to a close and resulting in no one being held
accountable for the theft of $10 million from the people of Belize.
The result was another indication of the weakness of Belize's
judicial system. End Summary.

2) On December 28, 2007, the GoB received a US $20 million grant
from the Government of Venezuela, only $10 million of which was
initially reported and properly deposited to the Treasury. The
other half of the grant funds were used to pay off the GoB's
obligation with respect to a controversial loan guarantee after
Universal Health Services, a private Belizean healthcare provider
defaulted (ref A). In December 2008, former Prime Minister Said
Musa was charged with the theft of US $10 million dollars from the
grant. Shortly thereafter, Ralph Fonseca, former Minister of
Housing and Home Affairs under the Musa administration, was also
charged in the same act of theft (ref B). Many Belizeans believed
it was improper for the GoB to provide a loan guarantee to a private
firm.

3) On February 10, 2009, Belmopan Magistrate Earl Jones held that
there was sufficient evidence for a prima facie case to be heard
before Belize's Supreme Court (second highest court in Belize)
against Musa on the single charge of theft (ref C). However on
March 3, 2009, the same Magistrate, following a preliminary inquiry,
discharged the case against Fonseca for lack of sufficient evidence
(ref D).

4) On June 8, 2009, Chief Justice (CJ) Dr. Abdulai Conteh heard a
submission for judicial review made on behalf of Musa against
Magistrate Jones' decision to send the case to the Supreme Court.
CJ Conteh held firstly that Jones had erred in concluding that
Belizean Courts had jurisdiction. CJ Conteh agreed that the offense
of theft with which Musa was charged was committed abroad, but
disagreed with Jones' conclusion that since the intended result of
the crime was in Belize, there was a basis to claim jurisdiction.
CJ Conteh held that since the theft had not occurred in Belize,
Jones did not have jurisdiction to hear the case. Furthermore, the
CJ found that Musa's contention that inadmissible evidence was used
by Jones in the committal proceedings could not be sustained.
Nevertheless, the CJ ruled that, collectively, the evidence put
forward by the Director of Public Prosecutions (DPP) was
insufficient to support the charge of theft, and not enough to
warrant Musa's committal for trial.

5) CJ Conteh determined that Musa acted in his official capacity as
Prime Minister and Minister of Finance when he authorized that half
of the Venezuelan grant be used to pay off the GoB's obligation with
respect to a loan guarantee. He further opined that while the act
of satisfying a guarantee was not a criminal act, Musa was guilty of
"political fecklessness" by not disclosing how this half of the
Venezuelan grant was used. In light of his findings on lack of
jurisdiction and insufficient or lack of evidence, CJ Conteh
determined on 8 June 2009 that the charge against Musa be dismissed.
The DPP has indicated an intention to appeal the CJ Conteh's
decision to the Court of Appeal (the highest court in Belize). She
has 21 days to do so, but to date no appeal has materialized.

6) Comment: Said Musa is the only leader in Belize to ever have
been charged with an indictable offense, and the fact that a case
was brought against him was initially seen as an indication that the
current administration of PM Dean Barrow was committed to stamping
out corruption. However, the latest developments highlight the
weakness of the DPP's Office and its serious lack of resources,
striking a blow not only to the credibility of the DPP, but also to
the effectiveness of the current administration. This is only the
latest in a string of high profile cases to be dismissed on
technicalities. While the DPP still has a few more days to file an
appeal, one is not expected, as no appeal was filed in the similar
case against Fonseca. While the fact that the case made it as far
as it did may say something about progress being made to crack down
on corruption, it also highlights the inefficiency and
ineffectiveness of the judicial process in Belize. End Comment.

DIFFILY