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New BTL Board Assumes Control

The public acquisition of BTL is complete; tonight, BTL is under the management of publicly - appointed directors. The takeover was made official this evening. At ten to 5:00, the new Board of directors headed by Executive Chairman Nestor Vasquez went in to the corporate headquarters at the Esquivel Telecom Center on St. Thomas Street in Belize City. The new board comprises Chairman and architect of the first privatization of BTL in 1988, Nestor Vasquez, senior Advisors to the Prime Minister, Manuel Esquivel and Alan Slusher, CEO in the Ministry of Finance, Audrey Wallace, Businessman and the Prime Minister's son, Anuar Barrow, and Secretary of the Board, Lois Young. Ousted chairman of the committee of management Dean Boyce walked out as they walked in and he told Keith Swift he has no hard feelings.

Dean Boyce, Ousted
"I certainly hope that going forward, the company flourishes. It's got a great bunch of employees that put a lot of hard work into the company over the years and I feel proud to have been part of the team so I just hope we can move on to bigger and better things."

Keith Swift,
"What are your thoughts about the takeover?"

Dean Boyce,
"Well I think it was a different way of doing it. We could have sat down and discussed this for the last 18 months at some point and I really think nationalization was really unnecessary. We had said last year that we would give up the agreement. We had said things like minimum rate of return, we were going to give that up and it wasn't a problem. What we wanted was just an agreement that was workable for this company."

Keith Swift,
"Are you voluntarily leaving or because you know that there were police in there?"

Dean Boyce,
"No the police had nothing to do with it. I met with the new Board and shook their hands and wish everybody well and it was very friendly, very amicable."

Keith Swift,
"You're not angry or bitter, you seem to be taking it in stride."

Dean Boyce,
"No but you can't be emotional about it. It is all supposed to be very matter of fact. You do what's in the best interest of everybody. I've said I think there was a better way of doing it, other people had a different perspective of it."

Interestingly, though he functioned as the boss at BTL, Boyce maintained in communications with government officials that he was never an employee of Telemedia.

The new board was empowered in the order signed by the Minister of Public Utilities Melvin Hulse this evening. He did that after the enabling legislation was passed by the senate this morning and signed into law by the Governor General this afternoon. It was immediately gazetted and Hulse signed the order - the new board could only go in only after all that was done. The passage of the bill into law was done in near record time - and the reason for that - as explained by the Prime Minister - was so that Michael Ashcroft or his assorted interests couldn't find some way to undermine it with nuisance litigation.

http://www.7newsbelize.com/sstory.php?nid=14856

Senate Approves BTL Takeover Bill

But that pace didn't stop the Senate from getting in a hearty and revealing debate. Leader of government business in the senate Douglas Singh started it off like Roberto Duran.

Senator Douglas Singh,
"The litigation continues and the government of Belize is saying no mas, no more, and therefore Madam President in the public interest it has become necessary to remove BTL from this pariah. I want to remind this House that in our national anthem there is a phrase that says "despots most flee." In the concise Oxford dictionary, despot is defined as a ruler who exercises absolute power especially in a cruel or oppressive way. Well Michael Ashcroft is the ruler over BTL and he exercises that power in a cruel and oppressive manner and fitting to Samuel Haynes 1925 anthem and certainly he had some vision in that context, the despot must flee or be forcefully made to do so."

Senator Godwin Hulse,
"We have seen the monster of an accommodation agreement under a government run awry who ceased to represent the best interest of the people. BTL, Madam President I could not stand here in just conscience and defend as a principle the nationalization or the takeover of any private sector entity. I could not because it is against the principle of the free enterprise system. But, and this is the big but, this is the but that has me dancing on the point of the tap, not the sensationalism out there, I don't pander to that, but the fact that my private sector entity which I would guard and cherish never came between hands, it did not come between hands, it deliberately, purposefully, skilfully, stripped, disclosed, got into the bed, and now after voluntarily getting in there calls murder.

It got in bed to accommodate the other party who was in heat and willing to get its thing satisfied because the scandal would have been something it couldn't stand. Nobody anticipated the work, as much as it has not been heralded, and I will not champion our cause, but Senator Gomez sitting up there and Senator Chan and all the other members, particularly those two gentlemen and myself put in 22 months of tireless, unpaid work; we dug and we dug and nobody thought we would get into that bedroom to see what was happening. And so they had to cover it, quick blanket over it, accommodation and so we have an accommodation which literally screwed the people of Belize. We got to make sure that doesn't happen again.

That the private sector Senator who should stand up for the private sector has not stood up, well I am properly standing up and saying bwoy if you are dragged into that bed and wrestled down onto mattress I would defend your case but you walked into there willingly and stripped yourself. And then you put the bill on me and I don't think the Belizean public needs to carry that."

Senator Hector Silva
"But today as I said we are in serious trouble because we gave ourselves away to this shining, to this bright stars called investors that come here without money, they borrow money and I will tell you right now how I am going to vote, you will see it when I get to that point, but I am against monopolies. It is good to give concessions, listen to me, it is good to give concessions. We need investors, bring them in under concessions but also based on regulations and within the ambit of our law."

Senator Paul Perriott,
"We are now here, we have gained through this administration that position that we have been fighting for since then. We had the signs and the public could remember our signs said we don't want any Prosser or any Ashcroft controlling BTL. As I said the past administration had the chance to make things right when the shares were passed from Michael Ashcroft to the government of Belize. If they had been honourable and done what supposed to have been done from then we wouldn't be at this juncture. But we know now that through all of that there was always the secret deal to put back BTL in the hands of Michael Ashcroft. If you listen attentively to the radio shows, you could go back to what Mose mentioned this morning, about BTL controlling the road and the cars going on the road and this should never be. I recall a while back that because we had, or Krem were having issues with BTL, they were removed from the cable companies, they had been refused continually to have their services to be passed through the fibre network. Now, the government in this position could take control of that and make it right for all Belizeans.

And since the management had been taken over by Michael Ashcroft, we have had continued issues with the administration of the company. We have seen employees, because of being vocal, being terminated, and I applaud this move as a Belizean and as a Senator representing workers. Having felt the wrath of BTL under the Ashcroft management and at the eve of our September celebrations, the battle of our forefathers to drive out the tyrants and despots is applauded. I applaud the bold move by the government of Belize to put things in order. Belizeans can now be proud owners of BTL."

In the end a division was taken meaning each senator had to declare their vote. 9 voted in support, meaning the UDP senators and the civil society senators, while the two PUP senators abstained. Noteworthy that that the PUP senators did not vote along with their party leader who cast an opposing vote yesterday.

http://www.7newsbelize.com/sstory.php?nid=14857

Chamber

And while the words of Labour Senator and BTL employee Paul Perriot were the most poignant, everyone was waiting to hear what Senator Godwin Hulse had to say because yesterday evening the Chamber of Commerce issued a statement saying, "The intended nationalization of our major telecommunication provider or any other company sets an alarming precedent.....For an action of such magnitude...the BCCI requests the government to delay the process in order to provide an opportunity for consultation with the business community ..." And no, they're not kidding. Tellingly, the Chamber had nothing to say about the revelation that, as it stood, the telecommunications industry was a sham, with Ashcroft-affiliated interests controlling the majority shareholdings in both BTL and SMART. Also the Chamber had nothing adverse to say about the accommodation agreement which flouted the authority of the Pubic Utilities Commission...but to the Chamber, the BTL acquisition is what's alarming. Good one. Or not so good...business senator Hulse told us why he wasn't convinced.

Jules Vasquez,
"You are in favour of this legislation, how do you square that with the fact that the Chamber of Commerce issued a release yesterday saying that they are alarmed at it and they view it with a great deal of trepidation for the investment climate?"

Senator Godwin Hulse,
"A good question Jules and thanks for asking. First of all I stand in lone right in the Senate even though I am representing the business community and as I said in the Senate I would have had no problem denouncing the legislation and its intended purpose if the private sector entity we were dealing with was squeaky clean. In other words it doesn't matter, the issue is not the benefits that they purport to have derived from some agreement or otherwise which has us in this litigation process. It is how it was arrived at and it is a big institution, filled with corporate attorneys who know the ropes inside and out and they know that it was illegal, that is the first thing. Second thing, I am the only singly named individual in a litigation against the Accommodation Agreement. There is the ACB and Godwin Hulse and so that is my position from day one.

My problem with the Bill however is that it is all encompassing, it is too wide, it captures all utility providers. I could have simply demanded it stayed in the committee but I understand the urgency so I have requested an amendment to the bill so the other public utilities providers are not nervous and I listed all of them; electricity, water and all the other ones like BELCOGEN on which I sit as a board remember. So that is of concern to me.

Also, of concern is the fact that it talks about possession without the details of what that entails so if in the future they come up with five or six other telecom providers they could be nervous that suppose this happens to me. You have to spell out exactly what you mean and that needs to happen in another Bill or an SI. But the most fundamental thing to my mind is to ensure that in the future, government cannot do what it did. We must understand that BTL could be looked at as in a way by some the victim. They were just beneficiaries as any businessman of a runaway government. We elected a government to protect and preserve our interests and they are the ones who should have held on to the legislation, they are the ones who should have maintained none of this happened and they did not and so to even license a way our jurisdiction to a foreign arbitration council, almost a court, is inexcusable.

So with all those things it is hard to stand up behind BTL and say poor BTL."

Marion Ali, News 5
"Should corporate companies be in anyway alarmed or concerned that the government can on any one day walk in and take over your place if they don't agree with what you're doing?"

Senator Godwin Hulse,
"I don't think they should be alarmed quite frankly. That would be overreacting. There are lots of remedies in law, there are lots of things that one can do. The government has said public interest and public interest involves a fantastic consolidated fund debt that you are saddling the public with to pay. This public is sick and tired of paying and paying and paying for what we don't get. I think all of you are sick and tired of it. I certainly am. I have lambasted the superbond for ever and I think that now we have a $38 million with BTL, there are threats of additional money for what, while we are not collecting any taxes.

Please man, every company in this country has a legitimate responsibility to pay their taxes. Everybody has to step up to the plate. If it was a case that you are doing expansion and you need some relief, fair enough, go for an extended concession, the public might be outraged but go get it and do it through an SI. Don't do it through a sneaky agreement and finally use that sneaky agreement to create a vesting act to create a whole new company is painful. I stood up against it then, I stood up in 2001 against the amendment and I'll stand up now against it."

http://www.7newsbelize.com/sstory.php?nid=14858

Hayward's Threat

And while Hulse had no tears for Telemedia's former owners, we received a cautionary press release from the Hayward Charitable Trust this evening. Hayward is the inscrutable trust which holds 70% of the shareholdings in Telemedia.

We can't say that they own it because the companies register shows the same old set of Ashcroft familiars as the owners of record: those are ECOM, BB Holdings Limited, BTL International Inc., BTL Investments Ltd., Valkyrie Communications Ltd., Thiermon, New Horizon Inc, and the employees trust Sunshine Holdings Ltd. Combined, those companies own 26 million shares, about 95% of the issued share capital in BTL which is what government is acquiring. There are one thousand other small shareholders who hold who hold 5% whose holdings are not being acquired.

But back to the Hayward release which, to our reading, seems to very much carry the tone of Michael Ashcroft. It warns that there will be more litigation, in Belize and London and states that Hayward will invoke the investment treaty between Belize and the United Kingdom. But, the release says it's all for the charitable causes that Hayward wishes to pursue not for Lord Ashcroft, who, the release informs, "has no economic interest in Telemedia." Strange though that Ashcroft's corporate mothership BB Holdings shows up as one of the owners of record in the Companies register. Nonetheless, Hayward's position is that it is now only interested quote, "in ensuring that the charities it was set up to help..receive full and lawful compensation."

And while on the subject of charitable trusts and the public interests they so happily serve, it seems odd that when what the Prime Minister says are Ashcroft-affiliated charitable trusts recently acquired the majority shareholdings in Speednet that no glad-handing release was issued to inform Belizeans of the beneficial acquisition. Of course, those trusts may be for "corporate charity." Interesting also that no denial has been issued either from Ashcroft-dom or from the Briceno's on the Prime Minister's claim that "Speednet is owned by Michael Ashcroft." A key point because it exposes as a sham the whole notion of competition.

http://www.7newsbelize.com/sstory.php?nid=14859

Mark Espat Explains Why He Abstained

Yesterday PUP Deputy Leaders Mark Espat and Cordel Hyde "fainted the crowd" at the House of Representatives when they abstained in the vote on the Belize Telecommunications Act of 2009. Particularly disappointing when we consider that Espat is the one who in June of 2005 dropped bombs from the backbench when he righteously criticized Michael Ashcroft's, "scorched earth campaign to gain control of Belize's most profitable public company - BTL" as a "conspiracy to control and suck dry BTL and its Belizean consumers." Tough talk - so why did Espat abstain yesterday when the bill was introduced to reverse what he had called a conspiracy? Espat explained to us today that before he starts cheerleading he has to make sure that there is actual progress on meeting the expectations of consumers.

Hon. Mark Espat, PUP Deputy Leader
"I think what is on the minds of most Belizeans today is how will this directly affect them. First of all how will it affect the hundreds of workers that are at Telemedia. The government has offered verbally an assurance but that ball is in the government's court. Secondly, will telecommunication rates go down and will the playing field indeed be levelled. Again the jury is out on that. And third, is what you mentioned just now in terms of the ownership of the company, the directorship of the company, re-Belizeanation so to speak, will dividends from the new telecom company remain in Belize and benefit Belizeans.

These are as you know all issues that I had addressed four years ago and at the time because I felt and I feel now very strongly that those are the elements that must be put in place and so I would say in response to your question that while the House considered yesterday an enabling legislation that in fact the proof is going to be in the pudding and so it is now up to this UDP government to ensure that those issues are addressed.

The very nature of my decision yesterday and also the decision of the Hon. Cordel Hyde and in fact of our Senators today to abstain is an indication that in principle the concept is one that favours positively or augurs well for our national development. No one can I think reasonably quarrel with the concept of Belizeans owning their telecom company with argument of dividends staying here, with employee security, and of course with lower more competitive rates and a level playing field.

Those are all laudable and noble objectives and I think if that is the direction we are going to move in, and if it can be achieved in a timely and efficient and effective manner then I think when the foreman stands up the verdict will be a positive one. But please I want to underscore that what was passed yesterday was not the new Articles of Association or company byelaws of BTL. It was not what the workers can expect that we were voting on. It was not who was going to own the company. What we voted on was an enabling law that now gives this UDP government to proceed as they had promised to proceed and I think our job as the Opposition and the job of the electorate is to ensure that the assurances that were given are delivered upon."

Jules Vasquez,
"You and your other co-deputy Cordel Hyde abstained. Why couldn't you just support your party leader?"

Hon. Mark Espat,
"The party did not take first of all a party line. Because again no fault of the PUP, this was an abrupt bill, we did not have notice of it until we were there. In fact we only knew a few hours before. There were lots of rumours going around and so the simple answer to your question is perhaps others would have been persuaded to abstain if we had had that opportunity. Perhaps we might have been persuaded to vote a different way. The fact is that as you know, I am on record in the House of Representatives on many of these issues that surfaced yesterday and it was not just the member from Lake I and myself. As you know, the Senators of the PUP also abstain. I think for the same reason that I explained earlier that it is difficult for us to assess this in such a short period."

Jules Vasquez,
"Would you agree then that your leader is in some sense compromised on his flexibility of responses to this issue because his family business or the business owned by his family, in which he is at least an interested observer is apparently owned by Ashcroft affiliated interests?"

Hon. Mark Espat,
"Well no I wouldn't say that Jules because the party leader has made it clear where he stands and where the party stands on the issue for example of so-called secret agreements and he repeated that position yesterday so I think that is a clear indication of the direction that he has been attempting to head in and I think the Prime Minister also made it absolutely clear that whatever motives he was impugning as it related to the lack of competition in no way related to the leader of the opposition."

Interestingly, the first secret telecommunication agreement we ever heard of was in March of 2004 and it involved Speednet and BTL which at the time was still managed by Ashcroft-affiliated interests. It was an interconnection agreement which was agreed to between BTL and Speednet right before Jeffrey Prosser was supposed to take over. We say it was secret because the Prime Minister at the time Said Musa told us that he didn't know about it and told us that the secret manner in which the agreement was arrived at seriously jeopardized the sale to Prosser. Of course knowing what we do now about the ownership of Speednet, the context of the agreement is more easily understood.

http://www.7newsbelize.com/sstory.php?nid=14860

The Cost of the BTL Takeover

And while all that is background, the issue in the foreground right now is how much will Government have to pay those Ashcroft-affiliated companies for their holdings in BTL. According to releases from Ashcroft, it's in the range of 300 million US dollars, but when we spoke to the Prime Minister yesterday, he was thinking about something more like half of that.

Jules Vasquez,
"Who will determine the value of the asset that he is repaid and who will determine the terms upon which he is repaid?"

Hon. Dean Barrow,
"The Supreme Court. The Bill provides for claims of compensation to be made if there is dispute and we know there will be as to the amount of compensation to be paid. The Supreme Court of this country will make the final."

Jules Vasquez,
"How much roughly would you say the asset is valued, you must have made an offhanded guess in your calculations?"

Hon. Dean Barrow,
"Well it depends on whether you take the accommodation agreement into consideration, naturally from my point of view and the law does say that in assessing compensation the court cannot take into account any accommodation agreement that contains provisions that are contrary to law. In a sense that is self-evident but it perhaps is not as clear as it ought to be since the tribunal in London clearly didn't get it. Once you remove the Accommodation agreement, if the court agrees that that agreement was also void, illegal, contrary to public policy, I think that compensation becomes more reasonable, the value of the company becomes something that we would be more readily able to handle. Perhaps $300 million, $250 million."

Jules Vasquez,
"Belize or US?"

Hon. Dean Barrow,
"I talk in Belize dollars. It is difficult, I am not an expert, I am not an accountant, I am not a valuer but I would think $300 million, $400 million that sort of thing."

Marion Ali, News 5
"And in the interest of the staff of BTL and the customers, can you assure that the benefits of the staff will remain the same and that the rates will remain the same for the public?"

Hon. Dean Barrow,
"I would hope that very shortly the rates will be lowered for the public but remember this will be run as a business."

The Prime Minister also discussed the US$22 million award given against government to Ashcroft's BBC Holdings and the Belize Bank by the London Court of International Arbitration. Add that to another US$19 million that Telemedia won against government form that same court and you have $80 plus million. Even for people who print money - that a lotta cheese, and Prime Minister Barrow told us he's duly concerned but feels he is morally on high ground.

Jules Vasquez,
"The LICA had a powerful ruling in terms of financial significance against your government last week, another US$22 million."

Hon. Dean Barrow,
"Yeah that is with respect to another settlement deed that the PUP gave to the Belize Bank under which they were entitled not to pay any taxes but you will recollect that when they first took that to arbitration, that same tribunal that has now given them the award gave them an injunction saying that we have to refrain from collecting our taxes in the meanwhile eventhough it said that the agreement was legal. The Supreme Court of this country refused to uphold that injunction and the judge said that in so far as he needed to form a preliminary opinion on the agreement, it was his preliminary opinion that it is illegal. That is the basis therefore on which we will resist any effort to enforce that award in this country that it is void as being against public policy, that it is illegal because it violates very clearly the tax laws of this country and the constitution of this country."

http://www.7newsbelize.com/sstory.php?nid=14861

Owner of Channel 7, Net Vasquez, assumes control of Telemedia

Early this afternoon, the Governor General, Sir Colville Young, penned his signature to put into law, G.O.B.'s acquisition of Belize Telemedia. Just like that in a period of twenty four hours, that began on Monday, with a special session of the House, G.O.B. hijacked the utility company. The events unfolded with a surprise introduction, debate and approval of a Bill to amend the Belize Telecommunications Act 2009 and with that the Barrow regime took its greatest political and economic gambit and nationalized the largest private company in Belize. According to Barrow, the move was necessary to put an end to the legal battles with Lord Michael Ashcroft over the Accommodation Agreement signed with the government in 2005. But the battles are far from over and now take on an added dimension. Under its past management, Telemedia said there is no public purpose to the nationalization of the company which has been valued at three hundred million US dollars, an indication that this is where battles lines will be drawn. This afternoon, the new board showed up in convoy to essentially get the keys of the St. Thomas Street headquarters, which in their first term the U.D.P. administration named the Esquivel Telecom Center. Businessman and the owner of Channel Seven, Net Vasquez, will be chairing the new Board of Directors and another old hand, Manuel Esquivel, was also named to the Board. Notably, new board members are Anwar Barrow, the son of the Prime Minister and his mother Lois Young as secretary. Other board members are Carla Barnett, Alan Slusher, Audrey Wallace, Ambrose Tillett and Colonel George Lovell. It is not known yet if under the new management, an executive committee will be put in place.

http://www.channel5belize.com/archive_detail_story.php?story_id=25110

What does nationalization mean for B.T.L.?

No doubt that you've have been following the news that Government has seized control of ninety-four percent of the shares in Telemedia. And after the legal formalities, Telemedia is now a state owned company. But what does the takeover really mean for investors? Will the litigations end? News Five asked attorney Eamon Courtenay earlier today for his views.

Eamon Courtenay, Attorney
"Those shares related to the Ashcroft Group and by that government is going to take it over and, I assume, run it until they sell it again. I find it quite ironic. A few years ago, if you recall, when the People's United Party was in government the then P.U.P. had literally forced Telemedia away from Prosser because Prosser had not paid. You will recall the 2007 vesting act which vested all B.T.L.'s assets in Belize Telemedia, taking it away from mister Prosser. At that time, if I recall there was a big hue and crying by the then opposition saying that was wrong and that you should never take away people's private property. Two years later, here we are, the same people who are complaining about it, taking it away from another private investor."

Jose Sanchez
"By taking away Telemedia, does that bring an end to the litigation?"

Eamon Courtenay
"If they take over the company all the directors have to say is we forgive the government that debt and say we are not going to collect it. So whatever award was made in favor of Telemedia, because they now control it and because the award was made against the government all we have to say is we don't want to collect it."

Jose Sanchez
"When it comes to foreign investment, what is the message that is sent to potential investors?"

Eamon Courtenay
"The message is to any investor, whether it be foreign or not. This law that is proposed, is an amendment to the Belize Telecommunications Act and what it provides actually is the minister by one signature can take away the shares in a public utility, it can take away the debt of a public utility, it can take away all the assets of a public utility simply by the stroke of a pen. Now as I understood the prime minister yesterday, they will be taking away Telemedia, I assume later today or tomorrow, and then they are going to hope to sell the shares in Telemedia to Belizeans and to foreigners. Well, would you invest in such a company when the law will provide that anytime in the future, the minister can with the stroke of a pen, say I have now decided to take the shares you have bought? I think it sends a very, very negative signal to foreign investors, as well as to local investors. It is saying that the government has the power to take away private property and if it chooses to do so because it has a serious dispute or difference with you, that it will do it. As I understand it, Mister Net Vasquez is going to be the new chairman of the Belize Telemedia as of tomorrow. I find that also to be a very curious appointment. I think everybody in Belize knows that Mister Net Vasquez along with other investors have already started another company in which they are attempting or intending to offer telephone services. I can only assume, his being put as the chairman of BTL, and then being told that they are going to sell it, I will not be surprised to see who is going to buy it. There are other utilities out there, Belize Electricity Limited for example. You know the water services. You remember the big debate with Stann Marshall when he said what he had to say and the government condemned him and everybody condemned him, I mean, they must be wondering if they're next."

http://www.channel5belize.com/archive_detail_story.php?story_id=25111

Chamber of Commerce says Telemedia Nationalization alarming

In the private sector, one of the first to weigh in is the Belize Chamber of Commerce and Industry. In a stern release issued late Monday evening, the B.C.C.I. said it viewed with concern the proposed Belize Telecommunication (Amendment) Act 2009 and the haste with which it was dealt. The Chamber says (quote) "the nationalization of our major telecommunication provider or any other company sets an alarming precedent, wherein the business community at home and abroad may be more discriminatory when considering future investments in our country." (Unquote) The B.C.C.I. further stressed that an action of this magnitude by the government is likely to have wide-ranging repercussions on current and future investments in the economy. When News Five spoke with President of the B.C.C.I., Amparo Masson, she told us that tentatively on Thursday after consulting with members and stakeholders, the B.C.C.I. will make a more detailed comment on the ramifications, locally and internationally, with respect to the takeover the utility company.

http://www.channel5belize.com/archive_detail_story.php?story_id=25112

Ex Telemedia Chairman says more litigations to come

A day after government announced it was nationalizing Telemedia; the debate is raging on the airwaves and in the board rooms. While the Prime Minister says the take over will end legal battles, outgoing Chairman of the Executive Committee, Dean Boyce, appearing on this morning's edition of Open Your Eyes, says the contrary and that a lengthy legal battle for the full value of the company, can be expected.

Dean Boyce, Chair, Exec. Committee, Board of Directors, Telemedia
"We heard very late on Sunday that this was going to take place on Monday. So, we thought, well ok, if the accommodation agreement is going to be used as the excuse, we'll give up the accommodation agreement and just take our chances. So, our lawyer sent in a notice and we've gotten rid of it entirely and that still doesn't make any difference. The statement was made in the House that all these problems will go away, right, if we nationalize and we take the company over. Well, sure yeah, that's gonna happen. It's gonna be worst. You have, they will assess what they consider a fair value. We know what the fair value was in a certain environment, a reasonable in environment. This is not a stable environment; people will only pay a certain amount under these current conditions. So, we're gonna be fighting for the difference and that's gonna take as long as it takes. The people that buy B.T.L. are going to pay the lower price. Well, the ones that we fight for: the shareholders, the employees trust will fight for the difference, the Hayward trust I'm sure is going to fight for the difference they've already said. Let's say we won, let's say we make three hundred million and somebody says yeah it's worth three hundred million US, the government has valued it at a hundred and fifty million or whatever they come up with. The difference between the two will have to be paid by government when it should have been paid for by whoever it was that was buying the company and an international operator will be prepared to pay a reasonable sum of money providing they've got a good platform."

This evening Boyce handed over Telemedia to the new board in a smooth and courteous transition.

http://www.channel5belize.com/archive_detail_story.php?story_id=25113

Senator Godwin Hulse concerned about Nationalization Bill

Still on the biggest story so far, in the Senate today, the vote was not unanimous on the Telecommunications Act. Nine senators supported the bill, none were against, two abstained and one member was absent. Senator Godwin Hulse, representing the business community objected to the Accommodation Agreement but said that it is no secret that he has concerns about the bill.

Godwin Hulse, Senator
"My problem with the bill, however, is that it's all-encompassing, it's too wide. It catches all public utility providers. I could have simply demanded it stayed in the Committee, but I understand the urgency, so I have requested an Amendment to the bill so that the other public utility providers are not nervous. And I listed all of them: electricity, water and all the other ones like Belcogen of which I sit as a board member. So that is of concern to me. Also of concern to me is the fact that it talks about possession without the details of what that entails. So if they, in the future, come up with five or six other telecom providers, they could be nervous that hey, suppose this happens to me. You have to spell out exactly what you mean, and that needs to happen in another bill or an S.I. But the most fundamental thing to my mind is to ensure that in the future the government cannot do what it did. We must understand that B.T.L. could be looked at in a way, by some, by some, the victim. They were just beneficiaries, as any businessman, of a runaway government. We elected a government to preserve and protect our interests. I was in a meeting yesterday with my Chamber colleagues and the issue and the concerns centered around the umbrella aspect, but it didn't divorce it from the order which will be made. As you would note this morning, the Senate nor the House has not nationalized B.T.L. They created the enabling environment for the Minister to so do. That order still has to come. You'll probably see it tomorrow."

In terms of BTL attracting investors, Hulse says it is important for government to assure potential investors that it is not a blanket bill that was passed and that can be revoked.

http://www.channel5belize.com/archive_detail_story.php?story_id=25114

Senator Hector Silva refuses to vote on Nationalization Bill

Hector Silva was one of two Senators who abstained from voting on the matter. Silva said he is against monopolies but the areas in this B.T.L. takeover are so grey that he absolutely had to abstain from voting.

Hector Silva, PUP Senator
"What I'm saying is this, why I abstained is one: are we sure that we are going to get a buyer locally for that? We have to go back to some foreign people ok. Are we going to ride that same horse again? Like we ride with Prosser, we might get somebody else. The other question that I have is the London litigation, Courts of London. Now, there are two judgments, one in favour of Belize, one against Belize. The one against Belize is bigger by far, almost three times. Now, what will be the next step of that court when they find that their order will not be carried? Then there are other things that I have always questioned; what will be the benefits to the people? Are we going to get improved benefits? Will there be a reduction in rates?"

Marion Ali
"Mister Barrow, umm, said yesterday it's for a general improvement."

Hector Silva
"Yes, well I have heard that over and over about general improvements and those improvements never come. So I have question marks. I want to see the methodology, what will be the framework, but especially what will the Belizeans benefit. Will we get back the skype that was taken away from us? Better rates? Even proof that we are going to get better service."

The other Senator who abstained on voting was the other P.U.P. Senator, Corona Villafranco.

http://www.channel5belize.com/archive_detail_story.php?story_id=25115

Hayward Trust will fight to protect charity's investments

The Hayward Charitable Belize Trust owns approximately seventy percent of Telemedia and this evening, it issued a release regarding its stake in Telemedia. Hayward's view is that the nationalization is both illegal and unconstitutional and that assertion will be tested through the Courts under international law and it will invoke the Investment Treaty between the UK and Belize. Hayward says it wants to ensure that the four hundred and fifty employees of Telemedia and the eight hundred small shareholders receive full and lawful compensation for any shares that are usurped by the government. The employees of Telemedia own roughly twenty-three percent of the company and forty million dollars were borrowed to secure those shares. It says it hopes that the employees receive full value in order to pay off the debts used to purchase them.

The release says (quote) "there will probably now be even more litigation in the future than there has been in the past. This litigation, in both Belize and before an International Arbitration Tribunal, may last for several years but ultimately Hayward is entitled to protection of its interests." (unquote). The release goes on to state that Lord Ashcroft has no economic interest at all in Telemedia and that employees must not be caught in the middle of the crossfire with G.O.B. and they must be treated fairly.

http://www.channel5belize.com/archive_detail_story.php?story_id=25118