Luke must pay! Print E-mail
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Thursday, 19 June 2014 00:00

luke 1.jpg - 34.83 KbFailed PUP Politician Luke Espat must find 29.4 million dollars to pay to the Belize Bank for debts that he personally guaranteed for his companies which have all gone into receivership. That’s because he’s exhausted all appeal avenues to the Supreme Court decision that he must be held liable for the recouping of that debt.

In November of 2013, Justice Courtney Abel ruled against Espat in the case brought by the Belize Bank. He found that Espat unconditionally and irrevocably guaranteed his companies' debts to the bank. The bank claimed that he signed a "Guarantee and Postponement of Claim Agreement" in which he personally guaranteed to pay the debts of those companies if they defaulted.

His counter to that claim was that the Bank’s principals induced him into that guarantee by making false representations, and so he appealed the decision to the Court of Appeal. That case was heard on Monday, June 16. His attorney, Said Musa, presented his case, and Godfrey Smith responded on behalf of the bank.

The main premise of Smith’s submissions was that the only way the court should hear Espat’s case for appeal was if they could show that Justice Abel made an error in law, or if the appeal was of great public importance. The Court of Appeal agreed with Smith’s submissions and dismissed Espat’s application to bring the case. They also rule that he must pay the bank’s cost in this hearing.

The 29.4 million dollars can be broken down as Belize Bank loans to Indeco Enterprises for 12.166 million dollars, 11.54 million dollars for Belize Crocodile and Reptile Breeders, 4.69 million dollars for Belize Ready Mix concrete, and another 1.02 million dollars for Indeco Enterprises.

In November of last year, Justice Courtney Abel ruled against businessman Luke Espat that he was personally liable for 29.4 million dollars to the Belize Bank, which the bank granted for his companies, now in receivership.

Last Updated on Thursday, 19 June 2014 15:45