Clarification on Central Bank of Belize Warning......

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.

Is Lord Neil Benjamin Gibson Stepping in to save Las Vegas Project?

Fate of giant Las Vegas Ferris wheel still up in the air

The game of chicken to build a giant Ferris wheel on the Strip drew a little tighter Monday with a public sales pitch by the developer of one project.

While not breaking ground or even clearing a defunct 1950s' motel from his site, Skyvue developer Howard Bulloch unveiled a 23,000-pound bearing needed to make his big wheel go 'round. He timed the ceremony to coincide with the annual REcon convention staged by the International Council of Shopping Centers, hoping to create a sense of momentum that might persuade potential tenants at the show to sign leases.
Skyvue, across the Strip from Mandalay Bay, would have a 500-foot London Eye-style wheel as its centerpiece, with 200,000 square feet of retail and entertainment space at its base and 107,000 square feet of light-emitting diode signs in the middle of the wheel or along the building's side. Bulloch said he has yet to line up financing for the project, which he said would cost $175 million, but vowed to open by the end of 2012.
Skyvue would cover about 11 acres of a 38.7-acre parcel Bulloch and his partners purchased a decade ago.
Quick money for construction could be critical because Caesars Entertainment Corp. has mapped out a similar development, Project Linq, adjacent to the Flamingo and the Imperial Palace. Caesars says it has inked $450 million in loans for its wheel and to finish the Octavius Tower at Caesars Palace.
The company has not published many final details about Project Linq, beyond covering about 500,000 square feet with a wheel about 500 feet tall.
Dennis Speigel, president of the consulting firm International Theme Park Services, has said he doubts the Strip could support two giant wheels.
"The first one out will be the last one in," Speigel said.
Big wheel projects have been floated for Las Vegas in the past but none materialized. Now, Bulloch has various government approvals, but not the money, while Caesars has money without final approval from the county.
The popularity of the 443-foot tall London Eye, which has attracted more than 3 million riders a year since 2000, has attracted a slew of imitators from Singapore to New Jersey to Myrtle Beach, S.C. The latest generation of Ferris wheels come with enclosed gondolas -- 22 passengers each for Skyvue -- instead of open-air baskets.
"A giant wheel has become the icon du jour," Speigel said.
"The London Eye has been a tremendous success," said Bulloch, who will model ticket prices on London's. The basic ride would cost $20 to $25.
The Monday ceremony also highlighted that big wheels are not financially foolproof.
The bearing Bulloch displayed is a leftover from a Beijing wheel that was never built. According to a spokesman, Bulloch paid about $840,000 for the unused, secondhand bearing.
Bulloch said he has received letters of intent from potential tenants for 15 percent of the retail space. A letter of intent indicates a formal interest, but not a rental contract.
At least some of the early skirmishing between Skyvue and Caesars has revolved around location. By placing his wheel right on the Strip, at a slight angle to the street, riders will get a better view, Bulloch said.
"That is the real appeal, not being off the Strip," Bulloch said.
But Caesars senior vice president Jan Jones depicted Skyvue as relatively isolated.
"If I was going to argue location, I would rather have the center of the Strip than being on the end of the south end," she said.

BUSINESS INTELLIGENCE

In a recent story, a couple who are worthy of a bit of recognition, donated 150 million dollars to the Stanford Business School.  Robert and Dorothy King have a goal to establish an Institution in developing countries that will assist Entrepreneurs in building their businesses.

Mr. King, an alumnus of and graduate of the  Stanford School of Business, and partner with an investment firm, Peninsula Capital located in Menlo Park.

The Institute for Innovation for Developing Economies will allow research to take place in such developing international regions.

Please read the full article at: http://philanthropy.com/article/150-Million-Gift-Will-Help/129645/

In our ever-changing world, we are facing times that we have never had to face.  More than ever, we must boost our skills in 3 specific areas.  

1.  We must speak and communicate with other people, communities and regions with the intention of making a true lasting change.

2.  Operate with an expectation of completion

3.  Know the need of the community being impacted

Let's all create better business through innovation!