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.”
