BELIZE & TURKS AND CAICOS - FINANCIAL SHENNANIGANS IN PARADISE.

SWASH BUCKLING WORLD FAMOUS BILLIONAIRE, WHO APPARENTLY MAKES HIS MONEY FROM SUCCESSFULLY AVOIDING TAXES? What a skill set, very admirable.


DISCUSSION FROM THE BELIZE CULTURE LISTSERVE.


Belize Bank puts depositors’ money at risk Print E-mail

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Written by Administrator
Thursday, 10 March 2011 00:00

FINANCIAL SHENNANIGANS THAT ANNOY PREDATORY TAX COLLECTING BUREAUCRATS!

Michael Ashcroft - If there is one mantra that the United Democratic Party has held ALMOST sacred is the right of the Belizean citizenry to know the workings of government, transparency being the order of the day for the UDP. ( That is a bit of self serving, tongue in cheek balderdash - no reporting of the National Debt to GDP ratio is permitted by this government ) So much this means to the UDP government that almost immediately upon taking office in May of 2008 the government introduced the Freedom of Information Act which prohibits almost all government documents from being secret. While that is for government documents, the same cannot be said for documents relating to private companies and court rulings.

The Guardian has been attempting for the past couple of weeks to secure affidavits that have been lodged at the Supreme Court registry by the Belize Bank against the Central Bank of Belize; however, a court injunction filed by the Belize Bank is preventing this newspaper or any other media entity access to the documents. From what we have been able to gather on the case, the Central Bank of Belize as the banking regulatory institution in the country had issued directives to the Belize Bank to discontinue a practice known as Parallel Banking. By our research on the issue, Parallel Banking is banks which are licensed in different jurisdictions and have the same owner(s) and or beneficiaries sharing management and business. Based on our research these parallel arrangements are established for various reasons including “to take advantage of different tax arrangements; to avoid legal restrictions in some countries on the ownership of foreign subsidiaries by domestic banks; or to diversify risk outside countries that are considered economically or politically unstable. In some cases, the motivation may be an attempt to evade regulatory constraints or consolidated supervision from the home country." –Working Group on Cross-border Banking.

Based on our information, under the People’s United Party it was a free for all for the Belize Bank conducting parallel banking transactions with a subsidiary in the Turks and Caicos; however, that came to an end when the bank in Turks and Caicos fell into trouble with the regulator in that jurisdiction. By our information, the Central Bank of Belize under the PUP gave the Belize Bank carte blanche to conduct any parallel transaction between Belize and Turks and Caicos.

Here is where the situation has reached the Supreme Court. The Belize Bank has taken the Central Bank to the court claiming that it does not have the authority to order the parallel banking to stop. More than that, the Belize Bank asked the case’s presiding judge, Justice Oswell Legall, for an injunction to prevent anyone from accessing affidavits that have been lodged in the case. Justice Legall issued the injunction and now no one outside those dealing with the case has access to the legal paperwork.

But the importance of the case is one that bears watching especially because of the financial implications that parallel banking has on the Belize Bank. Under its regulatory power the Central Bank of Belize instructed the Belize Bank to discontinue the practice and in particular to bring back what are called L.E.G. (Luke Espat Group) loans to Belize. However, the Belize Bank is refusing to comply with the instructions. The so called L.E.G. loans are quite an impressive amount. By our information the loans amount to as much as 190 million dollars and included in the portfolio are assets like the Port of Belize, Renaissance Tower, Croc Land, Indeco and other companies. The loans to L.EG. were split into two with the performing companies such as the Port and Renaissance being bought by a company called Private Investment Limited (PIL) (by our reckoning this is an Ashcroft affiliated company). These amounted to some 150 million dollars. The non-performing companies like Indeco and Croc Land and others amounting to some 40 million dollars were left with the Belize Bank. Now the Central Bank is saying the sale has to be reversed and the Belize Bank is resisting.

The instructions by the Central Bank would mean that the Belize Bank would have to re-purchase the 150 million dollar debt forcing the bank to come up with some serious amount of cash and dipping the bank’s reserves considerably.

But how it all came to this, where a single entity was allowed to rack up a debt of 150 million dollars is anyone’s guess. Those at the helm of the bank have some serious questions to answer and even more, as we’ve been reporting all along, this 150 million dollar debt is not the only one that the Belize Bank has to contend with. There are others of similar magnitude which we’ve exposed in previous articles, some of which have similarly been involved in parallel banking but which the Central Bank is yet to look into. For the time being however, the eye is on the L.E.G. loans and these will be crystallized when the substantive case begins on March 23.

FREE TRADE ZONE FOR BELIZE, GUATEMALA, SALVADOR AND HONDURAS NOW!

a BETTER MARKET FOR BELIZE ECONOMIC GROWTH AND SPUR FOR DEVELOPMENT.



OUT OF THE BOX BELIZE ECONOMIC THINKING

There is a lot of talk about Central American Economic Intergration. I personally think we should ACCELERATE SOME OF THIS Belize, Guatemala,Salvador and Honduras should be one trade economic block. Free Trade Status across borders right now. While the detractors complain of unfair advantage by their producers, I rather think the shoe is on the other foot, and the HUGE MARKET REPRESENTED BY THESE THREE COUNTRIES are going to be the boost, that makes Belize a world competitor and certainly a local area competitor. Most of the businesses in Guatemala are small scale cottage industries, or family enterprises. They aren´t really any more bigger, or competent than our own cottage industries and family owned businesses. The only advantage they have over there is MARKET SIZE. Our own Belize market is too small. But if we were part of a greater four country group and all of us in the same state of business creation as we are, then that MUCH BIGGER REGIONAL LOCAL MARKET gives our own ability to make shoes, chocolate candy, soft drinks, etc and compete eventually on the world stage.

BELIZE BUDGET SPEECH FOR 2011 FISCAL YEAR SOON!

Don´t know if you are keeping up with the current articles on http://westernbelizehappenings.blogspot.com

That said, the budget speech is due soon and I hope somebody can paste it up on here when they get it in total.

From what I gather, we are earning about $550 million for 2010 and spending around $850 million. The Opposition are crying about the increased debt. That amounts to $500 million over the past three years. I´m not going to criticize the debt business. But this places our National Debt to around $3 Billion.
I certainly want to know the National Debt to GDP ratio until now.
That said, Barrow made his choices and all in all, having just come through the most two difficult years of the world economic upheaval and depression, with a forecast 2.5% growth for 2010, which is due to the OIL exports. He and his party have done well. Difficult times remain ahead, as the world is in upheaval now and obviously imported OIL product prices is going to be a bit messy over the next year. Our straightened circumstances call for continuous fiscal conservatism. Barrow seems a little weak on this, but in the past two BAD ECONOMIC world years, I can´t argue with the results. However, going forward there will be no excuses. He has to get better performance for the tax dollars spent in the civil service. That does not necessarily mean expanding same, though in some cases it probably would. It does mean, also that his thoughts and that of the senior bureaucracy of the small Belize civil service need to be THINKING - OUT OF THE BOX. The colonial status quo, mind set won´t work for transformation of the Belize economy. I like the idea of the country becoming a total FREE TRADE ZONE. Failing that; opening up the one ( Free Trade Zone ) on the Western border and establishing one around Punta Gorda would be more limited objectives.( free trade zones for manufacturing in particular ) With new highway systems connecting us to Central America, we would be not taking advantage of our situation, particularly with the markets in Mexico, Guatemala and Salvador unless we do something on the trade issues and light manufacturing. How we do that remains to be seen. There is over 50 million people as a market available, more than enough for our small country capabilities. The Chamber of Commerce TV program has rightfully had panelists ridiculing BELTRAIDE and the other government departments and their attitudes in export encouragement and trade. The bureaucrats think the status quo is alright. Which is so far out of the ball park in thinking, that you could fire all those involved with that line of thought and get some fresh blood in there.
Our oil will not last for ever. That is our fiscal cushion to enable us to convert the economy. We have probably ten years to build a light manufacturing and re-export capacity. Or the country is destined to be a continued ex-colonial FAILED STATE.

Out of the box thinking about the Belize economy!

OUT OF THE BOX THINKING ABOUT THE BELIZE ECONOMY!

BUSINESS PERSPECTIVES brought up by one panel person, that Belize should make the WHOLE COUNTRY a FREE TRADE ZONE.

There are problems with that of course. Mostly to do with loss of customs duties and associated taxes. Yet, could we use the OIL money boost, to actually do this as FACT? There is no doubt in my mind that there would be indeed a huge difference in employment, production factories and storage warehouses in Belize.

The question is, do we have enough cushion from OIL REVENUES in our annual budget if it was fixed and we turned the country into a manufacturing and export country. The change would be dramatic over ten years. How to support our government though, is probably the biggest question in between all the development that would occur.

2010 in Belize we had the highest growth in CARICOM at 2.5%

Mr. and Mrs. Barrow, the first couple running the country of Belize. It is certainly looking like Prime Minister Barrow is running the country better than the former Prime Minister Musa. More methodical, conservative and concentrating on infra-structure.


EARLY NEWS ON THE GOVERNMENT BUDGET!

BELMOPAN, Belize – Today is March 7, 2011, Baron Bliss Holiday. Friday, March 11, is Budget Day in Belize, when Prime Minister Dean Barrow, who is also Minister of Finance, will present his new budget for fiscal year 2011-2012.

The prime minister has assured Belizeans that there will be no new taxes this fiscal year coming to March 2012.

He has told a news conference that total revenues and grand receipts are currently at $559.6 million, and the total expenditure is $566.7 million so that there is an overall deficit at this point in time of $7.1 million. He added that the good news is that currently there is a recurrent balance of $72.4 million and there is a primary surplus of $44.5 million.

Total revenue so far is $544.8 million. That's up by $44.5 million compared to the similar period for fiscal year 2009-2010.

Growth, or GDP for 2010 fiscal year was 2.5% thereabouts. Sounds right to me! For an off the cuff, or back of an envelope calculation and opinion.

Belize is better off than the rest of the CARICOM countries. This is the highest growth rate in the entire Caribbean coming out of the economic recession, as only two other countries in the region are recording positive growth. Those countries are Guyana and the Netherlands Antilles at 0.8 percent growth.

Debate on the budget will take place next week and implementation of the new budget will begin on April 1 as is customary. What I want to see, is the Debt to GDP ratio! Otherwise I´m generally satisfied.

BARON BLISS NATIONAL HOLIDAY IN BELIZE

MONDAY IN MARCH, THE NATIONAL HOLIDAY OF BELIZE.

BARON BLISS DAY.

Baron Bliss Day

Baron Bliss Day is a national holiday celebrated across Belize on or about every 9 March. (The actual day of celebration moves around to create the nearest convenient long weekend and is set by the Government.) The holiday is held in honour of one Baron Bliss, the great benefactor who passed away on 9 March, 1926, and whose gift continues to thrive.

Henry Edward Ernest Victor Bliss was born in Marlow, county of Buckingham, England on 16 February, 1869. Little information is available about his early life, but it is known that he had a brother. As an adult living in Quarry Court in Marlow, he was an engineer by profession and had been appointed a Justice of the Peace. A marriage to Ethel Alice Bliss produced no children. It was during his early adulthood that Bliss became the Fourth Baron of the Former Kingdom of Portugal.

It is generally accepted that Bliss received his title of Fourth Baron through a family lineage with one Sir John Moore, a war hero of battles past. Some suggest that about the same time the Baron received his title, he changed his surname from Barretts to Bliss. The counterargument is that this is mere confusion with the Portuguese version of the title, Baron de Barrato.

By the end of the first decade in the new century, Baron Bliss was wealthy enough to retire to his love of seafaring & fishing. However, in 1911 at the age of 42, the Baron was stricken with a paralysis that affected him from the waist downwards, confining him to a wheelchair. Undeterred, the Baron remained active and acquired a yacht, the Sea King, using it for leisure travel around the United Kingdom.

After the start of the First World War in 1914, the Baron's yacht was commandeered for the British war effort. Once the War had come to an end in 1918, Baron Bliss commissioned the building of the Sea King II. She was a yacht for meant for tropical waters, built to the Baron's specifications, and would be ready to sail in 1920.

Come 1920, with the Sea King II ready, the Baron prepared to leave England, never to return. Arrangements were made, and a settlement was given to Baroness Bliss, effectively ending the marriage. Baron Bliss had the Sea King II prepared and sent to the Bahamas; he would quickly follow to live aboard.

For about five years the Baron stayed in the Bahamas, living aboard his yacht and apparently spending time at Dunmore House (now the official Governor's Residence), on New Providence. He had purchased property on some of the islands, but whether he intended to settle in the Bahamas is open to speculation.

By late 1925, the Baron had grown tired of the social & administrative life that had become his routine. He longed for a more relaxed - read "fishing" - life, so he lifted his anchor and set sail for Trinidad. But his stay on the southeastern Caribbean island was to be a brief one; shortly after arrival in Trinidad, Baron Bliss contracted a severe case of food poisoning that left him in bad health.

Sickness coupled with a dislike of the general atmosphere led the Baron to hoist anchor again. This time he would head for Belize, following up an invitation from the Attorney General of Belize, Willoughby Bullock - and having heard of the great fishing. After a brief stop in Jamaica, he would arrive in Belize in days...
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A brief stay

Baron Bliss dropped by his last anchor on 14 January, 1926, in Belize City Harbour.

Upon arrival in Belize, the Baron's health seemed to improve. He took every opportunity to venture forth in his small launch to go fishing, to visit the cayes and to visit the barrier reef. Unfortunately, about a month after arrival and days before he turned 57, doctors attending aboard his yacht found him to be gravely ill and warned that the end was near.

Baron Bliss asked that the Governor of Belize, Sir John Burdon, visit him aboard his yacht. When the Governor arrived, the Baron informed him that he wished to bequeath the bulk of his estate to country of Belize. And on 17 February, one day after his birthday, the Baron's will to that effect was signed & executed right there on the Sea King II.

Three weeks later, on 9 March, 1926, the Fourth Baron Bliss of the Former Kingdom of Portugal passed away. He had never set foot on Belizean soil.
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Honoured benefactor
The Tomb of Baron Bliss.
The Tomb of Baron Bliss.

The good Baron Bliss had been in Belizean waters for less than two months in life, yet in passing, would remain with Belize forever. Shortly after his death, 9 March was declared Baron Bliss Day, a public & bank holiday celebrated with parties, fishing tournaments & regattas across Belize.

In a well-attended funeral on evening of 17 March, 1926, Baron Bliss was interred in what is now known as Bliss Park - although this would be a temporary arrangement. It is interesting to note that there are no indications that the funeral was attended by Baroness Bliss.

In his will, the Baron had left instructions that he be permanently interred in a granite tomb near the sea, surrounded by an iron fence, and an obelisk or lighthouse should be built nearby. You can see the whole Baron Bliss Memorial & Fort George Lighthouse in the photo at the top of this page.

The entire inscription on his tomb, shown to the right, reads:

In memory of Henry Edward Ernest Victor Bliss J.P. Of Marlow in the county of Buckingham, England.
4th Baron Bliss of the Former Kingdom of Portugal.
Born 16th February 1869, Died 9th March 1926 on board his yacht "Sea King" R.Y.S. in Belize Harbour.
A generous benefactor of this colony.

Baron Bliss had accumulated a wealth of almost one million British Pounds - how is not known, but it is speculated to be some combination of professional income, business deals and inheritance. At the time of his death, he held a number of properties and a large amount of securities & shares. His will stipulated for lifetime annuities for the Baroness Bliss - she subsequently passed away in 1945 - a few close relatives, and his faithful staff. Also stipulated was that the sum of 100 British Pounds should be set aside annually for a regatta. The bulk of the Baron's remaining estate, a value of approximately $1.8 million Belizean, was willed to Belize under very specific conditions.

A generous benefactor, indeed!

The British Government decided to contest the fact that Baron Bliss considered himself as resident in Belize, in a bid to collect estate taxes. A 11 March, 1926, ruling in the British courts stated "that it is not made out that this gentleman acquired a British Honduras domicile," and that the estate was liable to pay necessary estate taxes.

The British coffers grew by almost $500,000 Belizean.
The Legacy

The Baron's will was meticulous. It called for the formation of a trust fund, and dictated whom the main bankers were to be, Messers Coutts & Co., of London, England; the auditors, Messers Alexander Clapperton, C.A., also of London, England; and the Board of Directors, initially the Governor, the Colonial Secretary & the Attorney General of Belize. His will left arrangements for the Baron Bliss Trust to invest his money, and all income generated from the principal would be used for the permanent benefit of Belize and all its citizens. Funds from the Trust are also available for a limited number of basic infrastructure projects, such as canal construction or the establishment of street lighting. The principal amount of the Trust is not to be touched, and consists mostly of British stocks, securities & term deposits. The value of the Baron Bliss Trust stands at about $1.5 million Belizean.

As detailed as what was to be done with the money, so was what the Trust couldn't be used for. No churches, dance halls or schools (excepting for agricultural or vocational) were to be built with Trust funds. Also, no money was to be spend on the maintenance or repair that any Trust-funded project may need or require; that is the responsibility of the recipient, generally the people of Belize through the Government, (meaning stretched tax dollars are needed for upkeep - always a contentious issue in any country.)

(There is a curious stipulation in the Baron's will that has no known explanation: No American shall become a Trustee on the Board of Directors for the Baron Bliss Trust, nor shall any American be in the employ of any Trustee.)

Over the years, the Baron Bliss Trust has spent over $2 million Belizean on capital projects across Belize that include: The Bliss Institute Library & Museum, a centre of Belizean culture, it's home to the National Arts Council; The Bliss School of Nursing in Belize City; a number of health centres & libraries around Belize; and the Baron Bliss Regatta & Fishing Tournament. The Trust has also been used to restore the small launch the Baron used with the Sea King II, and it is now on display at the Government House in Belize City.
Check our calendar for when Baron Bliss Day falls this year.
Read about the Baron Bliss Memorial in our tour of the Belize District.

ARCHEOLOGIST MARRIED TEAM, INVESTIGATE MAYA ORGANIC FARMING IN BELIZE

Chaa Creek archeological study on Mayan food production system by Linda and Ted Neff, archeologists from the midwest USA.


ARCHEOLOGIST MARRIED TEAM, Linda and Ted Neff, INVESTIGATE MAYA ORGANIC FARMING IN BELIZE


Very interesting piece from the Arizona Daily Sun. Kudos to Chaa Creek as well.

by Linda Neff

Ted, my husband, and I returned to Belize, Central America, this past summer after a 10-year child rearing hiatus.

In the mid 1990s, I followed Ted down to the Belizean jungles to study Ancient Maya agriculture. While Ted traipsed around in the jungle looking for and excavating agricultural terraces, I spent my days with our 6-month old son, Lucas, on my knee, analyzing the eroded ceramic artifacts and agricultural stone tools associated with the ancient terraces.

As a University of Pennsylvania graduate student, Ted investigated agricultural intensification through a study of agricultural terracing during the Classic period (A.D. 300-890) near the ancient Maya center, Xunantunich (pronounced Shoo-Nan-Tun-Eech), which is located in west central Belize.

Interestingly, population reconstructions suggest that this area supported more than 500 people/km2. I was interested in the everyday farming tasks and tools used by the ancient Maya. Given our research interests, a good friend and colleague, Dr. Sam Connell, asked us to return this past summer to help him run the Foothill Belize Program.

The Foothill Belize Program, sponsored by Foothill College in Los Altos Hills, Calif., and the Belize Institute of Archaeology (www.nichbelize.org/ia-general/welcome-to-the-institute-of-archaeology.html), is an undergraduate program that "balances community development and ethnographic experiences with archaeology" (www.foothill.edu/anthropology/belize.php). For four weeks, students learn about the modern and past cultures of Belize through a variety of experiential learning activities.

Ted and I co-directed one of these programs called the Belize Farming: Past and Present Project. Working on an organic farm, we attempted to reconstruct the local food system at the Lodge at Chaa Creek in an effort to understand the past food system of the Maya.

Located just 3.82 miles northeast of Xunantunich, the 33-acre organic farm was conceived of by Mick and Lucy Fleming, who own The Lodge at Chaa Creek.

Chaa Creek is an eco-resort that consists of a 365-acre nature reserve that sits "along the banks of the Macal River in the foothills of the Maya Mountains and is home to a number of exotic jungle dwellers including peccaries, jaguar, monkeys and many others as well as more than 300 species of tropical and migratory birds" (www.chaacreek.com/belize-vacation/). The organic farm provides fresh food for the resort. Seven farmers combine traditional Maya hoe farming methods with a raised bed system to produce native and nonnative vegetables, ornamental plants, and fruit trees, which form a dynamic mosaic similar to the ancient Maya landscape of the past.

The Chaa Creek organic farm in many respects replicates conditions of agricultural intensification that we assume were present in the past when the Ancient Maya farmed the area. A definition of agricultural intensification is to increase inputs, which consist of things like money, labor, skill, and technology, into an area of land because land better suited for agriculture is unavailable and/or food demand has increased.

First, the resort owners have increased inputs on a small part of their property, simulating a land shortage. Second, some of the land on the farm is marginal in terms of agricultural suitability when compared to the surrounding area. Third, the resort restaurant creates a demand for organically grown produce. Fourth, the farmers are making an effort to farm traditionally, sustainably, and organically, which is what the Ancient Maya were "doing." Finally, we assume the farm, as an ecosystem, is similar Ancient Maya "farms." Consequently, it is an appropriate laboratory for studying agricultural intensification in this region.

Working with the Yucatec Maya farmers, Ted, Lucas, the students and I participated in all the tasks involved with the production of organic food. As anthropologists, we also recorded our activities every five minutes to determine how much human time and energy goes into the creation of an organic meal. In addition, we mapped all the cultural features on the farm and conducted informal interviews with the farmers to learn about field histories, composting strategies, vermiculture activities, soil taxonomies, planting strategies and the basic principles of organic farming.


Linda Neff, an archaeologist, is in the current Master Gardener class. She and her husband, Ted, will speak about organic farming in Belize at the Master Gardener Association meeting this coming Thursday, March 10, at 6:30 p.m. at Shepherd of the Hills Lutheran Church. Dana Prom Smith is coordinating editor for the column. He can be contacted at stpauls@npgcable.com. For more information about the program, call Hattie Braun, coordinator of the Master Gardener program, at 774-1868, Ext.170, or visit the website highelevationgardening.arizona.edu.