Portofino Resort- Now with a new BEACH BAR!!
Topic Options
#389010 - 10/02/10 03:20 PM Godfrey Smith throws down the gauntlet
Marty Offline

Senior Crown Counsel Godfrey P. Smtih
Prime Minister Bean Barrow
The Government of Belize’s move to sell off shares in Belize Telemedia Limited (BTL) to Belizeans and to at least one regional telecommunication corporation, Digicel of Jamaica, has sparked a propaganda war between the government and one of Lord Michael Ashcroft’s leading Belize-based attorneys.


Senior Counsel Godfrey P. Smith’s letter warning the Jamaican Digicel group about what he described a Belize’s unstable investment climate prompted the Guardian, the official voice of the ruling United Democratic Party (UDP), to call Smith a “traitor” in a banner headline story in this week’s edition.


The Guardian newspaper was not alone in its condemnation of Smith’s letter; the government’s Press Office also weighed in with its own press release about Smith. In a etter, dated September 17, addressed to Richard Fraser at Digicel headquarters in Jamaica, Smith warned that, “Belize, over the past decade has become highly politicized and successive governments have displayed an alarming disregard for sanctity of contracts involving foreign investors.”


The letter highlights a number of instances in which the past PUP government did not honor its contractual agreement with foreign investors and the present administration of Prime Minister Dean Barrow has refused to honor international arbitrators’ awards to foreign investors.


Smith’s letter offered that if Digicel is contemplating due diligence in acquiring an interest in BTL, “we would be happy to share substantial and detailed information with you on Belize’s very disturbing attitude and track record as it relates to foreign investment and international business contracts”.


The government’s release responds with this broadside: “For a former parliamentarian and practicing attorney, born, bred and fed in Belize, to deliberately and calculatingly undertake to undermine the economic interest of his country and people, is outrageously unpatriotic, if not treasonous! The government strongly condemns such actions and calls on Mr. Smith to publicly apologize to the people of Belize...”


Smith, who has been at the forefront in the fight with the government over the acquisition of BTL, told The Reporter on Thursday quite simply:“We are fighting back.”


“Dean Barrow, pretending to have a lot of balls, stood up and nationalized BTL and the shares of clients that I represent. He is refusing to pay. Has announced to the world that as God is his witness, monies owing to BTL through certain arbitration will not be paid. And we are supposed to just sit back and just take it. He said that this is a war and that he will win the war. In the letter we’ve hit back. If he doesn’t want a fight then he should not have invited one,” said Smith.


“I feel that the Prime Minister has disgraced himself by bawling in the manner in which he has.”


Smith pointed out that there are $90 million worth of arbitration awards that have not been paid.


“I wrote the letter to Digicel in my professional capacity, I did not publish it to the world. Essentially the letter warned that if they intend to purchase shares in BTL, they might be caught up in all the litigation. And, yes, I referred to what I feel is Belize’s disastrous track record and lack of sanctity for international business. That’s a fact. There is no use sweeping it under the rug, it has to be faced up to. I did not just say it about this government; I said successive governments have done this.


“I was not the one who did those things. I was not the one who nationalized a private company and did not pay for it. Now I must shut up. My clients must shut up and just take being wrong and strong by the Barrow administration, and not lick back. When we lick back, then, there is a smear campaign; you’re branded a traitor. I think Barrow is being unmanly with all this protestation over a simple letter. If I am a traitor, Barrow is a big wimp. I think he’s disgraced himself by this unmanly protestation. We weren’t crying and bawling when he was bitch-licking us,” Smith declared.


The BTL workers trust was not valid, according to the government, but the Court of Appeal squashed that decision and declared that the trust was a legal entity with Dean Boyce and Keith Arnold as trustees, Smith said.


At stake in the trust is a whopping twenty-three percent of BTL that Smith said by his estimate is worth around 80 million dollars.


But according to Communications Workers Union’s Paul Perriott, BTL workers have not really discussed the trust to determine if the workers are in support of it. Perriott said that when Dean Boyce invited BTL workers to discuss the trust at a meeting at the Fort George Hotel, the management of BTL intimidated the majority of workers to the extent that only three persons turned up at the meeting.


Perriott said the company had sent out a notice to all its employees and told them in no uncertain terms not to attend the meeting.


The 23% that the trust represents is estimated to be worth between 50 to 60 million dollars, Perriott said, which the government would have to pay, once there is a settlement of the BTL nationalization claim.

THe Reporter

Top
#389015 - 10/02/10 03:24 PM Re: Godfrey Smith throws down the gauntlet [Re: Marty]
Marty Offline
Godfrey bad-mouths Belize!

Prime Minister Dean Barrow today condemned the actions of former Attorney General, Godfrey Smith of Marine Parade Chambers, for making what he describes as “anti-Belizean,” “anti-patriotic” and “completely reprehensible” statements to an Irish investor negotiating to purchase shares in Belize Telemedia Limited (BTL).

On September 9, Godfrey Smith wrote Richard Fraser, group head of mergers and acquisitions for Digicel saying, among other negative things about the government: “If indeed you are contemplating doing due diligence on acquiring an interest in BTL, we would be happy to share substantial and detailed information with you on Belize’s very disturbing attitude and track record as it relates to foreign investment and international business contracts,” wrote Smith to Digicel, in his capacity as attorney for the BTL Employees Trust, which held 22.39% in BTL at the time the Government took their shares in August 2009.

On Wednesday evening, September 29, the Government of Belize fired off a press release stating, “For a former parliamentarian and practicing attorney, born, bred and fed in Belize, to so deliberately and calculatingly undertake to undermine the economic interest of his country and people, is outrageously unpatriotic, if not treasonous.”

The release continued, in chiding Smith, to say: “The Government of Belize registers its strongest condemnation against the actions of a Belizean attorney and former parliamentarian deliberately intended to smear our country’s reputation abroad and discourage foreign investment in Belize.”

It would appear that you are trying to scare off Digicel, Amandala told Smith this morning. To this he responded that Digicel has access to a battery of professionals and lawyers. “They will not scare easily by some half-cocked... letter that has no basis; if it has basis they will consider it...”

Despite recent letters by Smith warning the Jamaica-based Digicel group against putting up their money to invest in shares in Belize Telemedia Limited (BTL), a Digicel team is back in the country this week, according to information from Prime Minister Barrow.

Ironically, on September 23, 2010, Dean Boyce, trustee of the BTL Employee’s Trust, wrote Barrow offering to purchase 51% interest in BTL—a proposal that Barrow said he would not even entertain.

“It is now clear that an opportunity exists for the trust to secure, on behalf of the BTL employees, a majority stake in BTL. Such an investment will ensure that BTL remains in Belizean hands, and that the company will be fully supported by BTL staff,” Boyce tells Barrow.

Smith told Fraser: “We are writing to you to put you on notice of prior claims to such shares by the former shareholders of BTL, including our clients Dean Boyce and the trustees of the BTL Employees Trust (the claimants).”

“The letter which has angered government is absolutely factual,” Smith told Amandala.

Smith noted in his letter to Digicel that they are challenging the constitutionality of the acquisition of BTL shares. The Supreme Court had ruled in the government’s favor, but the trust has appealed to the Court of Appeal and is awaiting proceedings there.

“In the event that any shares in BTL were to be transferred prior to the final determination of our clients’ right of appeal, such transfer would be liable to be set aside in the event that the appeal court finds that the acquisition was unlawful and invalid. In such circumstances, the government would have no title to the shares which could be validly transferred,” Smith’s letter continued.

He also said, “There are at least two international arbitrations underway under Belize’s Bilateral Investment Treaty with the UK concerning the BTL nationalization, as well as an array of lawsuits locally in Belize. These lawsuits and arbitrations, like flashing, neon caveat emptors, will not conclude any time soon and are likely to affect entities that may purchase shares in the nationalized BTL.”

Fraser responded to Smith on September 13 saying he was not in the position to comment on the matters raised by the Smith law firm.

The Government’s press release calls on Smith to “desist from any further actions of the sort, which are clearly motivated and sponsored by some interest other than the national interest.”

The GOB release notes that Smith ironically cites various examples of breaches of contracts, “including agreements entered into and later reneged on or unilaterally cancelled by the last PUP administration in which he himself served as a minister of government and Attorney General.”

Smith said that he is not in the habit of responding to personal attacks by the government, but would respond by saying that he indeed wrote the letter not in a political but in a professional capacity, as a lawyer representing Boyce and the trust.

He said that nobody can accuse him of political bias because some of the breaches occurred under a government of which he was a part, so he knows what he is talking about.

Smith alleges that the Barrow administration has no intention of paying the compensation estimated at tens of millions of dollars. It was in that context, said Smith, that he wrote to the intended buyer pointing out certain things, which he asserts to be facts.

Smith told Digicel that successively the government has displayed an alarming disregard for the sanctity of contracts involving foreign investors, citing tourism contracts, the Belize Water Services privatization, the legal dispute between Belize Telemedia Limited and the Public Utilities Commission, the Newco airport concession, and the alleged refusal of the Barrow administration to honor arbitral awards, as well as amendments to the Supreme Court of Judicature Act, which the Ashcroft group and affiliates are now challenging in the Supreme Court.

“There are at least two international arbitrations underway under Belize’s bilateral investment treaty with the UK concerning the BTL nationalization, as well as an array of lawsuits here in Belize,” said Smith.

According to Barrow, however, the government is challenging the validity of the arbitration proceedings on the basis that the treaty had never been domesticated into Belize law.

Compensation to former shareholders is a huge issue. “The Prime Minister has no intention of paying. He said he will not pay arbitration awards [$90 million] and I believe he has no intention of paying this,” said Smith. Barrow says that Smith’s claim is untrue.

The Government and the former shareholders of BTL have not been able to settle on what compensation should be paid to the company, though, according to Prime Minister Barrow, they have submitted a claim at foreign arbitration for US$300 million.

Barrow said that foreign experts are auditing an internal assessment of BTL, and once the experts make a recommendation, they will present a compensation offer to former shareholders.

Barrow told us that he would like to see Government retain 40 to 45% shareholding in BTL after offering shares for sale to the Belize public, in view of an agreement with Digicel.

He also told Amandala that he will move to return the level of business tax on telecommunications from 25% to 19%—a move that will also benefit BTL’s rival SpeedNet, and it would lower the rate of taxes on dividends, which should benefit private enterprises in general.

Barrow said that the government will investigate to do its best to ensure that the Ashcroft group does not use another company to re-acquire shares in BTL; however, if somebody fronts for Mr. Ashcroft under his or her own name, there is very little that can be done to prevent that, except in cases where interested buyers are known allies of the former shareholders. The risk of having someone front for Mr. Ashcroft, Barrow concedes, is very real; however, he said, that would mean that they would never be able to transfer those shares to him [Ashcroft].

Speaking on “The Adele Ramos Show” on Tuesday, September 8, People’s United Party area representative for the Albert division and deputy leader of the party, Mark Espat, said that while he fully supports returning the company to Belizean ownership, there are some issues that the Government should clarify to improve the success of the re-privatization.

“Government also needs to come clean in terms of where we are in negotiations with the former owners of BTL,” said Espat, adding that Belizeans need to know cost of acquisition and how this would factor into future budgets of the government.

“It will add a lot of credibility to the process,” said Espat. If government doesn’t reveal those facts, they might have a problem offloading the shares, he added.

Barrow told us that the issue of compensation won’t be settled in a hurry, but he believes that based on the preliminary assessment, the monies that government would earn from the sale of shares should not differ much from the compensation that would be paid out to shareholders.

He told us also that the shares would be sold at below market value, though he did not indicate a price, which he said has yet to be finally agreed upon after discussions with his Financial Secretary and government’s economic advisers.

“We will happily call off the fight if we are compensated properly,” said Smith.

Amandala

Top

Links
Click for excellent scuba lessons with Elbert Greer!


Things to do

News
Daily News
Daily Weather

Classified Ads
BelizeNews.com
San Pedro Sun
Ambergris Today
SP Town Council
Channel 7
Channel 5
Amandala
Love FM
The Reporter
Caye Caulker
Chronicles

PLUS TV
TV Newscasts
Radio Stations

Click for our
Search thousands of Belizean-only websites

Event Guides
Event Calendar
Specials & Events
Things to Do
SanPedroScoop
iTravel Belize
Paradise Theater

Blogs
San Pedro Scoop!
Tia Chocolate
Tacogirl
My Beautiful Belize
I-Travel Belize
Belize Adventure
Belize Hub
Romantic Travel
Bound for Belize
Conch Creative
As The Coconuts Drop
More Blogs...
Search thousands of Belizean-only websites
Chaa Creek is an award-winning luxury Belize Resort, rated as one of the worlds best Eco Lodges. We are a pioneer in adventure travel to Belize since 1981!
White Sands Dive Shop - 5 Star PADI Dive Facility - Daily diving, SCUBA instruction and Snorkeling
Caribbean Inspired All Natural Condiments & Spice Blends, Over 100 are Gluten Free!
We manage a variety of homes, apartments, condos and commercial properties here on Ambergris Caye. Our minimum lease on ALL properties is six months.
Conch Shell Inn: All rooms are right on the beach in the heart of San Pedro, so within walking distance to anything and everything!!
Lil’ Alphonse has snorkel equipment to fit anyone as well as Marine Park Tickets and flotation devices to assist those not as experienced.
Coastal Xpress offers a daily scheduled ferry run to most resorts, restaurants and private piers on the island of Anbergris Caye. We also offer  private and charter water taxi service.
Mini Chat

Cayo Espanto
Click for Cayo Espanto, and have your own private island
More Links
Click for exciting and adventurous tours of Belize with Katie Valk!
December
S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Who's Online
0 registered (), 40 Guests and 6 Spiders online.
Key: Admin, Global Mod, Mod
Forum Stats
18,672 Registered Members
44 Forums
64,016 Topics
462,196 Posts

Most users ever online: 1,262 @ 06/10/07 07:16 PM




AmbergrisCaye.com CayeCaulker.org HELP! Visitor Center Goods & Services San Pedro Town
BelizeSearch.com Message Board Lodging Diving Fishing Things to Do History
BelizeNews.com Maps Phonebook Belize Business Directory
BelizeCards.com SanPedroDaily.com Picture of the Day

The opinions and views expressed on this board are the subjective opinions of Ambergris Caye Message Board members
and not of the Ambergris Caye Message Board its affiliates, or its employees.