Telemedia responds to P.M.’s “dramatic and final” act
Speaking on radio and then on television last week, Prime Minister Dean Barrow disclosed that something “dramatic and final” will have to be put in place in respect of Government’s ongoing entanglement with Telemedia. And according to the Prime Minister, the time was fast approaching to cut the Gordian knot. While the P.M. also disclosed that Digicel was interested in acquiring Telemedia, there are reports that the dramatic and final solution Barrow is floating around is his government’s acquisition of Telemedia. So what does the current threat mean for Telemedia and its employees? A response could be found in a copy of the bulletin issued to Telemedia employees today by the Trustees of The B.T.L. Employees Trust. The bulletin outlines the current state of play and contains rather interesting information on the future of Telemedia.
Firstly, it reveals that despite the Prime Minister’s assertions; Telemedia is still awaiting a response to its written request to meet and negotiate on any point and has already made some “very substantial compromise offers’’ to G.O.B. At the root of the problem is the Accommodation Agreement, in place since 2005, but which the current government refuses to honor even though it has been declared legally valid and binding on the government by the London Court of International Arbitration. At the heart of that agreement, according to the bulletin, is the business tax rate. The bulletin states that Telemedia’s business tax rate is five times higher than that charged to other telecommunications companies around the world and is fourteen times higher than that charged to B.E.L. on similar revenue levels.
The bulletin also highlights that it is the current government’s stance on the agreement which is preventing the sale of Telemedia at a fair price and depriving its nine hundred Belizean shareholders of a fair value for their investment, which based on an offer received by Telemedia at the beginning of 2008, amounts to around US three hundred million. In the event of any acquisition by government, the document says that Telemedia would consider entering into dialogue with G.O.B. for such a sale, at a fair market value, providing flexible terms and conditions are included to allow trustee shareholders to continue charitable work. Telemedia also wants to secure in such a process, the long term financial future of its employees. The bulletin outlines that the sale of the company to a large international telecommunication operator would bring benefits to employees for career advancement, badly needed revenue to the government’s treasury, and large amounts of foreign exchange to stimulate and help develop the Belize economy. All in all, according to the bulletin, it is unclear why the P.M. is pursuing his current policy of making provocative and unhelpful statements.
