Original Story
Seven Letters from Minister Contreras to Lord Gibson Discussed
Posted by staff on April 3rd, 2014 | Posted in Economics, Government | 2411 Views
We now take a closer look at Lord Neil B Gibson. Lord Gibson came into the spotlight earlier this year when, as a foreign investor, he provided financial support and an online endorsement for Ralph Huang’s political campaign in Cayo South.
It created quite a stir in the Public as Lord Gibson claimed that with that victory, he awaited Ralph Huangs appointment to a Ministerial Position within Government. Another development that soon evolved was the extent of the relationship Between Lord Gibson and Minister Erwin Contreras.
Lord Gibson’s website proudly boasts “that the partnership has been working closely with the Honourable Erwin Rafael Contreras, Trade Investment, Private Sector Development and Consumer Protection.”
PlusNews identified at least 7 letters of comfort, all on Ministry of Trade Letterhead and signed by Minister Contreras himself or on his behalf. We sat down with Michael Singh, CEO in the Ministry of Trade to have a frank discussion on the letters.
Michael Singh – CEO in the Ministry of Trade
“Let me answer this for you as clearly as I can. I have met Lord Nelson personally once. He asked for an appointment and has been in to visit with me. I don’t know the gentleman very well. I do know that he, from what I understand, was involved in business offshore type industry, financial services, of which… not very clear to me exactly what it is that he does with offshore financial services. He had expressed an interest, from what I understand, in setting up a bank in Belize. He was under the impression, at one point in time, that the Small Farmers’ Bank would have been for sale, but the Small Farmers’ Bank is not a bank. So clearly, you can’t sell a bank that’s not a bank as a bank.”
How did Lord Gibson get that idea that a Government Bank was up for sale? Well, one of the letters from Minister Contreras dated May 7, 2012, has a clue.
Hon. Erwin Contreras requested help in the Launching of Belize’s National Bank! “The government of Belize is currently seeking necessary funding and investors …. One of the current programs … is exploring the possibility if turning the Development Finance Corporation (DFC) into a National Bank. We invite Interstate group and Lord Neil B. Gibson to assist the country and Belizean people with this vital economic program.”
Gibson did set up his own Financial Services Company in Belize: Handels Security Ltd. But queries began coming to Central Bank and in February of 2013, Central Bank issued a warning on Gibson’s company; Handel’s Security Ltd. Until recently, Michael Singh sat on the Central Bank Board. He had this to say about that warning.
Michael Singh
“Well, it’s factual. It’s factual that he is not authorized to transact, because he doesn’t have a banking license in Belize. So, I think it was a clarification, and the clarification came through requests coming in from inquiries, asking whether or not he has such a license, and that the warning was just clarifying that he doesn’t. But it doesn’t mean that the man is a bad guy. It just means that he’s not licensed to do those things in Belize. Belize is not in the habit of inviting financial service operators that don’t have a track record or that will not survive under the scrutiny of international organizations. At the Central Bank, on which board I sat on for two years, I will tell you that the prudency that the bank goes through is extremely tight.”
Yet in spite of the warning, another letter written and signed by Minister Erwin Contreras dated March 24, countered the Central Bank warnings. That letter, again on Ministry of Trade Letterhead, states, ‘’…we did a separate investigation into allegations made against Handel’s Securities Ltd., and found them all to be false claims. I personally sat with the chairman of the Central Bank of Belize and Mr. Gibson, and we were told by the Chairman that the Central Bank was investigating Handel’s Bank & Trust Co Ltd. an international bank licensed in Belize, for alleged wrong doing, not Handel’s Securities…. we would be happy to speak with anyone regarding this matter.” We asked Minister Singh what investigations could His Ministry carry out that could declare the allegations as false claims.
Michael Singh
“I think the word investigation might be the word that’s a little confusing. It really is background checks that we do. Investigation seems to indicate that it’s a criminal investigation.
Louis Wade – Plus TV News
“It gives the impression that the kind of investigation that was done is likened to the kind of investigation done by Central Bank.”
Michael Singh
“It’s a background check. Well, I will tell you that, within our Ministry we have a lot of foreign investors that we deal with. One of the requirements of an EPZ license, for instance, is that there must be a background check of the principals of the company, before we give them an Export Processing Zone. I don’t think that the letter said the man is licensed. It never went against what the Central Bank said.”
In actuality the letter written by Contreras did give the impression that Handels security was still licensed. “This letter serves as confirmation and support… that Handels Securities Ltd is licensed with the International Finance Services Commission of Belize and the licenses are in good standing until 2014.”
We also asked CEO Singh how could he or his ministry be asked by the Minister to defend or speak to anyone on behalf of an Investor.
Michael Singh
“A Central Bank regulatory issue is completely different. I am not at liberty to discuss a Central Bank regulatory issue with anyone, because part of my role on the Board of the Central Bank is that we sign an agreement for confidentiality, which has to be respected. You know, whether it’s Lord Gibson, or whether it’s you, whether it’s Joe Blow on the street, I have to respect that. OK? So I would not be in a position to clarify or dent anything in respect to what happens in Central Bank deliberations, regarding any investor. I can confirm that a letter was sent out, speaking to a warning, regarding activities by any entity that’s not licensed to do that. That’s a public warning that went out. I can speak to that. If somebody would come in here and ask me if this man is a legitimate or not, that’s a very hard thing for me to decide. All I can tell you is what our background checks have shown, and our background checks have not shown any criminal activity by the gentleman.”
In Friday’s newscast CEO Singh gives his opinion on Lord Neil Gibson’s varied interests in Belize and he speaks frankly on the issue of Comfort Letters to investors.
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