Outspoken citrus veteran calls deal a sellout
Concerns over the proposed sale of shares in Belize’s sole citrus processor continued today with one director of the Citrus Growers Association claiming that details of the deal have been kept secret even from the board. According to Denzil Jenkins, the initial letter of agreement between Citrus Products of Belize Limited and prospective investor, Blue Waters Limited, owned by Trinidadians, was signed in May but he was not privy to that document until August. Jenkins claims that the entire board could not have approved the agreement because they only saw the full contract on the first of September. He goes on to allege that at that time, even C.G.A. chairman Ernest Raymond and Vice Chairman William Bowman, who signed the agreement, could not explain to his satisfaction the particulars of the deal. Those details are that Blue Waters has agreed to purchase twenty-five million shares in Citrus Products of Belize for one dollar each. This morning, Jenkins maintained that growers are getting the short end of the stick.
Denzil Jenkins, Director, C.G.A.
?These are going to be newly issued shares of C.P.B.L. At one dollar each, those shares are going to be at a giveaway price to Blue Waters, when it is considered that after position of C.P.B.L. from C.D.C., there was significant injection of capital into the company and there has been reported great performance to the company and prospects for future. Two, Blue Waters Limited, will be given in addition to the twenty-five million shares for twenty-million dollars, twelve million twenty-three thousand four hundred and forty-six shares in C.P.B.L. for the unbelievable price of U.S. two dollars. And I want to repeat, twelve million twenty-three thousand four hundred and forty-six shares in C.P.B.L., Citrus Products of Belize Limited, for the unbelievable price of U.S. two dollars. These shares are presently owned by growers in the investment company, through the investment company. When the present price formula expires on the thirtieth of September 2007, Blue Waters must give approval to any new price formula. This is giving Blue Waters the must vital control of grower?s prices for their fruits. Now provision is made in the agreement for arbitration, but who in their right mind will on the one hand give such powers to Blue Waters and then expect to fall back on arbitration, which is always a complicated process. A minimum dividend of five million Belize dollars will be paid yearly for the next ten years. What does that mean? With forty-seven percent of that going to Blue Waters, they will be taking away Belize twenty-three point five million dollars as dividend over the next ten years. Any lower dividend must be approved by Blue Waters. Point five, no decision of the board of C.P.B.L. can be made without the approval of Blue Waters, that means that total control of the company will be in the hands of Blue Waters. And having read the agreement, I would have to conclude that because those who have signed: the chairman, the vice chairman and the C.E.O. of C.P.B.L., because they are not fools, there has to be a deliberate attempt to deceive the growers. Let me say that it is widely rumoured around that certain individuals who are prominent in the industry are linked up with these Caribbean partners, so that benefits will be reaped off shore. We do not yet know what agreement is going to be effected with the Caribbean partners in connection with the sale of products to the Caribbean and elsewhere. There is room for all sorts of hanky panky.?
Chief Executive Officer of the Citrus Growers Association, Bridget Cullerton has cited a confidentiality agreement which prevents her from discussing the details of the deal. Just before newstime, however, we received a background paper from the C.G.A. which categorically denies Jenkins allegations. It cites the board’s long publicised intention to reduce the company’s burdensome debt and points to the desirability of taking on Caribbean partners to help market its products in CARICOM. As for the corporate restructuring, the C.G.A. maintains it has not departed from its original investment plan under which the local growers will always maintain fifty-one percent ownership and control of the company. The particular issuing and sale of the shares, says the C.G.A., is simply a legal device that allows the investment money to be used to bring down the company’s debt as well as pay future dividends. It does not affect the intended ownership or control of the company. News Five understands that on Friday the agreement will be explained to those C.G.A. members who signed the petition calling for a special general meeting on September sixteenth. Other meetings with growers are slated for the following week prior to the sixteenth.
