VZCZCXRO9304
RR RUEHGR
DE RUEHBE #0238 1762159
ZNR UUUUU ZZH
R 252159Z JUN 09
FM AMEMBASSY BELMOPAN
TO RUEHC/SECSTATE WASHDC 1885
INFO RUEHZA/WHA CENTRAL AMERICA COLLECTIVE
RUCNCOM/EC CARICOM COLLECTIVE
RUEHCV/AMEMBASSY CARACAS 0016

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