VZCZCXRO0898
RR RUEHGR
DE RUEHBE #0172 0802217
ZNR UUUUU ZZH
R 202217Z MAR 08
FM AMEMBASSY BELMOPAN
TO RUEHC/SECSTATE WASHDC 1198
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS BELMOPAN 000172 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CEN - ROIS BEAL 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINR BH
SUBJECT: BELIZE: 
 
REF:  (A) Belmopan 068, (B) Belmopan 163 
 
¶1. (U) Summary. Following a crushing defeat in February's general 
elections, former People's United Party's Prime Minister Said Musa 
resigned as party leader.  A leadership struggle ensued between his 
preferred successor and a group of reformers who had challenged 
party leadership in the past.  The leadership contest has further 
fractured an already beleaguered party inducing party founder George 
Price to denounce the lead reform candidate and request his removal 
from the party.  Rumors that the new government will file criminal 
charges against Musa and his allies abound.  End Summary. 
 
¶2. (U) The general election on February 7 yielded a landslide 
victory for the United Democratic Party (UDP).  Of the 31 contested 
seats, the People's United Party (PUP), that had governed with a 
large majority for more ten years, won only six seats - in two cases 
retaining seats by less than 20 votes (ref A).  The former Prime 
Minister Said Musa, resigned as party leader and a power struggle 
ensued.  A leadership contest developed between former Education 
Minister Francis Fonseca and a group of reformers who had resigned 
from Cabinet during the previous government.  Two of the reformers 
(Mark Espat and John Briceno) planned to run for the party leader 
position at the PUP national convention scheduled for March 30. 
 
¶3. (U) By March 17, both reform candidates withdrew from the race 
citing the contest as "closed, undemocratic, and fixed."  Francis 
Fonseca, the only remaining candidate, is closely tied to the 
unpopular leadership of the previous government and shares the 
surname of his cousin Ralph Fonseca who has been pilloried in the 
press for alleged illegal activities. The reformers and local media 
accuse the discredited former leadership of doing everything 
possible to anoint Francis their hand-picked successor. 
 
¶4. (U) On March 19, revered former Prime Minister and PUP party 
founder George Price, in his role as senior party advisor, submitted 
a letter to the National Executive of the PUP asking that reform 
leadership candidate Mark Espat be removed from the party.  The 
letter cited party disloyalty and included allegations of conspiring 
with the UDP to have former PUP government officials arrested. 
 
¶5. (U) Former Prime Minister Musa and his close allies have come 
under increased pressure due to allegations of criminal wrongdoing. 
Press reports state that as early as next week criminal charges will 
be filed against former government officials including Musa. The 
charges will most likely be linked to financial improprieties 
relating to a government guarantee of private debt.  If Francis 
Fonseca emerges as PUP leader, he may be involved in the 
investigation as he signed the original government guarantee in his 
role as Attorney General (ref B). 
 
¶6.  (U) Comment: Despite the PUP's crushing defeat at the polls in 
February that seemed to indicate the public's outcry for greater 
transparency, honesty, and good governance in Belize, it appears the 
former Prime Minister and his close cronies are reluctant to 
relinquish their remaining claim to power.  With representatives of 
the old guard maintaining a stranglehold on the PUP, and the former 
Prime Minister and his cronies pulling the strings, the party is 
unlikely to leave behind allegations of corruption or gain popular 
strength for the next elections.  End Comment. 
 
HILL