P.M. says previous board of directors should pay U.S. $22.5 Million loan

Earlier in the newscast, we told you about the press conference on Telemedia’s shares.  After the nationalization of Telemedia, former Telemedia Chairman Dean Boyce put the value of the company in excess of three hundred million U.S. dollars.  That’s a hefty sum that still looms over the cash strapped government. The compensation as well as  a loan of US twenty two point million from the British Caribbean Bank that the government nationalized also came up at this morning’s press conference. When asked as to who will pay the loan, the Prime Minister’s view was incredulous, he said it would be the previous board of directors.

Jose Sanchez

“In regards to the twenty-two point five million dollars loan, the offer says that money is void. How is that void when money was borrowed from one bank and paid for shares?”

Dean Barrow

Dean barrow

“Because it was a loan for an improper purpose and the argument is that the board of directors at the time and the bank must be presumed to have known. So that is the legal position of Telemedia and of the government of Belize.”

Jose Sanchez

“Who is responsible for repayment?”

Dean Barrow

“In our view the board of directors of the time. But I stress that from government’s point of view, we recognize that it is still at this juncture, still a liability we must contemplate as such. We will argue that no compensation is due because it is an illegal loan. But unless and until the court makes that declaration, that is only a position that the government is taken.”

Jose Sanchez

“I believe that money was used to purchase shares from RBTT, some of which was used to procure shares for the P.S.U. species?”

Dean Barrow

“The unions I believe got some shares as a consequence. We explained to them that their shares are intact.  There is no question of going after their shares. And the other shares that had been given to other persons were acquired by the government and compensation must be paid. It’s not about the shares and paying compensation for the shares. It’s about the re-pay ability of the loan. So I think the distinction must be made between the loan and the shares.”

Jose Sanchez

“And the three hundred million dollars that the Ashcroft group is saying is the value of the company that it would want to see returned? Is the value you assessed the company at, and how soon should we see the payment?”

Dean Barrow

“Absolutely not the value that we place on the company at the time of acquisition. Which we see as the trigger point for the compensation. But clearly there will always be this great divide between what we   see as the true value or the former owners of the shares would see as the true value.  It’s a matter again that the court will have to determine. We will make an effort, we will say to the owners at some point in the very near future, this is what we’re prepared to offer. We know in terms of what we’ve heard from them as the kind of figure they are banding about but there will be no agreement and ultimately  then we are satisfied that the court will have to come up with a true compensation figure.”