Arguments in B.T.L. case continue in Supreme Court
Preliminary arguments in the ongoing legal battle involving Belize Telecommunications Limited were heard today by Chief Justice Abdulai Conteh. The claim of Gilbert Smith, representing the B.T.L. Workers Trust versus B.T.L. and the Government of Belize began this morning with attorneys Lois Young-Barrow appearing for Ecom, Michael Peyrefitte for the workers, Michael Young for B.T.L., Lionel Welch for Innovative Communication Corporation, and Solicitor General Elson Kaseke appearing for the Government of Belize. Smith is asking the C.J. for a declaration on what is a permitted person as defined by B.T.L.’s Articles of Association. Also on the table is an application regarding the status of B.T.L.’s special share. Today was the second day of proceedings as late last week, the Supreme Court granted an injunction barring the Government of Belize from transferring any of its shares in the company until rulings on the substantive matters at hand are made.
In his address to the court, I.C.C.’s Lionel Welch asked for a stay in proceedings until a decision is made by the Court of Appeal regarding a motion to determine who are the legal directors and chairman of the B.T.L. board. Welch contended that such issues were inherent to any claim for any of B.T.L.’s shares. Making it clear that he did not wish to “cross swords” with the Appeals Court, the C.J. heard submissions from Michael Peyrefitte who argued that Welch’s claims were “baseless” as those matters do not affect how shares are to be dispersed. The Solicitor General agreed with Peyrefitte, citing that the Government was “suffering” from the court’s injunction, urging quick action in this matter.
Young-Barrow contended that the application before the court was premature as there is no live dispute because her client, Ecom, as of today, holds only fifteen percent of the shares in B.T.L., nowhere near the twenty-five percent that would require permitted person status. And as published in a press release to the media, Ecom intends to buy no more than ten percent of the twelve point five percent of the company shares being offered by the government. Young-Barrow also asserted that as per a letter from the Prime Minister, her company has been granted the rights of a permitted person, but has chosen not to invoke those rights at this time. Ecom also stated for the record that it has not signed any agreement to purchase any amount of shares. Young-Barrow further contended that Ecom is separate and distinct from Michael Ashcroft or Carlisle Holdings and is a wholly owned charity trust. This despite the fact that as part of her arguments, she would point to an affidavit made by Carlisle attorney Jose Alpuche and as would be revealed later in court, the chairman of Ecom is former Ashcroft appointed chairman of B.T.L., Dean Boyce.
In his interjection, the C.J. pointed out that the press release by Ecom, while persuasive to the court, is not binding.
Rebutting Young-Barrow’s statements, attorney Michael Peyrefitte argued that Ecom is a private limited company and that when negotiations between the Government and the workers broke down, Ecom represented to Belmopan that it had the financial capital to purchase the shares. Peyrefitte maintained that the sale of the government shares to Ecom is a “done deal” and contended that only B.T.L.’s board can grant permitted person authority, not the Government of Belize.
In his submission to the court, Solicitor General Elson Kaseke agreed with Young-Barrow indicating that B.T.L.’s Articles of Association are retrospective, triggered only when an entity becomes the shareholder of twenty-five percent or more of the company’s shares. The SolGen also told the court that as a result of this latest action, Ecom might not buy anything close to even the ten percent shareholding because of the “prejudice suffered in this case”.
It is expected that the Chief Justice will deliver a decision by Wednesday whether to proceed with the case as requested by Peyrefitte or dismiss the matter as asked to by Ecom and the Government of Belize.
