B.E.L. concerned over nationalization of utility company
A commercial dispute has ended up in the nationalization of Belize Telemedia. Since Tuesday the Government took over full control of the telephone utility company, which, at least for now being, is run by businessman Nestor Vasquez and Anwar Barrow, the son of the Prime Minister. So what lies ahead for the other utility company, Belize Electricity Limited? Its parent company, Fortis operates out of Canada. Fortis’ C.E.O., Stan Marshall, has sparked fiery rhetoric at government in the past over rate disputes with the Public Utilities Commission. There were once talks of nationalizing the electric company… that did not go anywhere. But things have changed dramatically in the last forty-eight hours. At his first quarterly press conference on May twenty-ninth last year, Prime Minister Dean Barrow said the government would be interested in buying back B.E.L. And in light of Telemedia’s hostile takeover, B.E.L.’s C.E.O. Lynn Young expressed concern today about the future of the utility company.
Lynn Young, C.E.O., Belize Electricity Limited
“If the government wants to take back the company, I personally prefer to see it done in a more amicable manner. That’s an option the government always has; if they want to take back the company; sit down and try to work it out. I think that’s always better than a hostile takeover. It is a possibility that is obviously more likely now in the sense that we have a government that seems now to not hesitate about it. Maybe they did hesitate, I don’t know, but is willing to go that step. But having said so, it is a really drastic step and I don’t think any government would or should make such a step lightly because as has been expressed in the media already, it sends a certain message to investors. And it’s not the best message. Mister Marshall has said already that if he knew what he knows now, he wouldn’t have invested in Belize. He said that publicly. You know the government has to look at those statements and take it for what they think it is and make changes accordingly. But coming back to B.E.L., even before this happened with B.T.L., I think the situation in B.E.L. has reached a point which I have expressed to the government, that something’s got to be done. The company as a result of the decision last year is in a situation where the banks won’t lend it money. And the investors are saying they won’t invest in the company. And it is not realistic for us to have a utility like B.E.L. that’s the life and blood of the organization cannot more—the company cannot borrow money to do any expansions and it cannot get investments. So, as I have put it publicly, on several occasions, something has to be done. Fortis, obviously, has to look after its own interest. And I know it is doing so. Will it be a court case? Probably. And I don’t think the government is not expecting that. I’m hoping we can get things resolved before it gets to that. Because obviously when it gets to that then we would be going down the same road that we saw B.T.L. went. But what happens, if it works that way, then we just have to deal with it right. Fortis has said that, publicly again, that if the offer was right, they would sell. I think Mister Marshall said that on Open Your Eyes that he said that they would do that. Perhaps what has happened here might even add to his anxiety, but I don’t want to put words in his mouth and I don’t want to speak for him. All I can say is he said publicly that if the offer was made, he would.”
If there is any comfort, according to a government release today, Act Number Nine, which led to the takeover of Telemedia, is limited to telecommunications.
