Belize decides on veteran Musa's fate in election

BELIZE CITY (Reuters) - Belizeans voted in a general election on Thursday on whether to give veteran Prime Minister Said Musa a third term or throw him out of office after graft scandals and economic woes hit the Central American country.

Voters in campaign T-shirts and carrying umbrellas lined up in tropical drizzle to decide between Musa and challenger Dean Barrow, a shaven-headed former attorney.

A prominent political figure since Belize won independence from Britain in 1981, Musa has a solid support base. But his popularity has been shaken by graft scandals, ballooning public debt and tax hikes that sparked riots in 2005.

"This government: all of them have to go. Dean Barrow will make for a better change," said Dwayne Hums, 19, one of many first-time voters in this youthful country of 300,000 people. He was huddled under an umbrella outside a polling station.

Polls predict a close race and a high turnout after a vitriol-packed campaign. Barrow's United Democratic Party, or UDP, calls Musa corrupt and incompetent, and Musa's People's United Party, or PUP, says Barrow is a danger to the nation.

Wedged between Mexico and Guatemala, Belize's population is dotted between tropical jungle and laid-back Caribbean coastal towns like Belize City, the busiest. Despite food and fuel price rises, many believe Musa will best protect their finances.

"They help people financially wise, housing wise and education wise," said Denise, 35, who helps run a local guest house and whose partner works in the United States.

Many Belizeans -- a mix of indigenous Maya, Mestizos, Creoles and African-descended Garifuna -- rely on remittances from relatives working abroad. Tourism and farming are the other main economic motors.

Musa, a white-haired former lawyer of Palestinian descent, has campaigned on bread-and-butter issues, pledging new jobs, income tax cuts and a free laptop for every school child.

"MAINTAIN FAITH"

"Basically, I'm asking the people to maintain the faith in our party," the 63-year-old incumbent told Reuters this week, warning that investment would suffer if the opposition wins.

Barrow, also a former attorney but more folksy with cool shades, is focusing on corruption scandals under Musa. He promises laws to curb embezzlement by public officials, as well as fighting crime and building new homes.

"My team understands the need for commitment to integrity," he said. "Every indicator ... suggests we are going to win."

Both parties are centrist with similar economic policies.

The ruling PUP was the driving force behind independence and has won 10 of 12 elections since Belize, then under British rule, first elected a legislative assembly in 1954.

Musa has driven economic growth, bringing more cruise ships and starting crude oil drilling. But he borrowed heavily and had to calm investors with a debt restructuring in late 2006.

Belizeans were electing a new House of Representatives, where the dominant party will then confirm its candidate for prime minister, and they also voted in a referendum on whether Senate members should be elected, rather than appointed by the government.

(Editing by Kieran Murray)