He's been the majority shareholder in BTL since 1999 and on Wednesday Michael Ashcroft's often controversial, always profitable run with BTL should come to an end.
He is supposed to sign off on the transfer of shares to Innovative Communications Company. ICC's executives and government's public pronouncements have made it seem as just a matter of course, a formality and low key final scene for a man who got $57 million in first world money for third world assets.
But it appears; it's not going to be that simple or that painless; Ashcroft may not go away that easily. He's been called upon by the opposition to block the transfer because it violates BTL's articles of association, which prohibit any foreign company or person from owning more than 33% of the company. And though his British peerage may deny it, Ashcroft holds a Belizean passport, and his company, Carlisle is Belizean.
So what will Lord Michael do or not do on Wednesday? Well, today 7NEWS Director Jules Vasquez got the rare public comment from this usually very private businessman. Here's what he had to say in an exclusive interview where he discussed the closing of the deal and disclosed a little known interconnection plan.
Jules Vasquez,
"You feel closing on Wednesday is a realistic target?"
Michael Ashcroft, Majority Shareholder BTL
"Well we are working towards that and we are hoping we will be able to do so. There are of course many formalities that one has to go through in the closing of a deal of such complexity. And if for any reason it is delayed, it is not necessarily because there is a problem with the deal itself. It is the logistic of it but we are hoping to close it on the day that government and ICC would like to do so."
Jules Vasquez,
"The opposition has called upon you as the owner of the controlling interests to invoke Article 38g which give the directors discretionary authority to disallow any foreigner or authority from owning more 33% of the company. Will you adhere to this entreaty from the leader of the opposition?"
Michael Ashcroft,
"We are taking the matter seriously and we have written to the Attorney general last week asking him for his view on the interpretation of that article and we are still waiting for the response from him. And we are taking our own legal counsel in Belize and that will be presented to the board of directors at the appropriate time for the directors to be fully informed of all the facts necessary in order for them to make the decision s to whether to invoke the discretion or not."
Jules Vasquez,
"A cynical impression might be that you got the money, US $57 million, and it's the ultimate endgame if you can hold on to the money and maintain control of the company by blocking the sale with the invocation of the Article 38g."
Michael Ashcroft,
"Jules you obviously have been mixing with the wrong group of people over the last few years to come to that observation."
Jules Vasquez,
"So that is not your choice to continue holding on to BTL?"
Michael Ashcroft,
"No, We've made our decision that we wish to exit BTL. That's a whole different subject matter as to why we have chosen to do that and it's not appropriate at this time but that's our preferred route."
Jules Vasquez,
"We have heard throughout this that Michael Ashcroft has been the problem. In fact, that is why this very unusual arrangement involving risk taking with taxpayers money has had to be invoked because 'Michael Ashcroft is the problem, Michael Ashcroft didn't want to allow interconnection with Intelco, and Michael Ashcroft didn't want competition.' Is this a fair and accurate characterization of your conduct?"
Michael Ashcroft,
"You can always tell when a politician lies - his lips are moving and we have certainly seen a lot of lips moving recently. But as far as competition is concerned, again the record is quite clear - We have always said that BTL does not fear competition as long as the playing field is leveled. The problem is that it is never being leveled. And as far as interconnection is concerned, for a long time Intelco was not in a position to take advantage of interconnection and then of course we had the process to go through where the law says both parties negotiate and if you cannot arrive at a rate, it then goes to the PUC. However not withstanding that, the government last approached BTL and wanted Intelco connected and we were happy to connect Intelco at the rates proposed by the government and for the period of time the government asked to interconnect for 90 days and during that time, negotiations would commence as to what would be a fair rate for interconnection. I had not problem with that on the provision that if Intelco and BTL couldn't agree on a rate, the matter would go to international arbitration. That was the issue on which Intelco found it difficult to accept interconnection. From their point of view they wanted the PUC to be the independent arbiter and BTL with its experience with the PUC did not think the PUC could be independent. As a consequence Intelco has been without interconnection for the last five months which it did not have to go through."
Jules Vasquez,
"There are reliable reports that included in the deal with Mr. Prosser and ICC is a 15% guaranteed rate of return, a floor on the rate for international calls, and also an interconnection rate of 14 cents. Have you ever been offered such concessions?"
Michael Ashcroft,
"We would have been absolutely delighted to have been offered those concessions because those concessions would not only have leveled the playing field - they would have tilted them in our balance and in our favor. So, no and in each of those particular matters we never wanted a floor on international calls. We wanted complete supply and demand pricing and aggressive competition - we did not want a managed market. And therefore the rates you see Intelco have been advertising recently are perhaps gone forever so anybody wants to make cheaper international calls should be doing it in the next short period of time."
Jules Vasquez,
"Will we have lower rates if Mr. Prosser takes over with those concessions?"
Michael Ashcroft,
"Do remember, in a competition environment, to give one company certain guaranteed rates of return and not all competitors the same rate of return does mean that at the end of the day it is either the consumer who will pay for that rate of return or the government will have so subsidize BTL over the years in order to give BTL its 15 percent rate."
Jules Vasquez,
"So the situation worsens for the consumer - why make the deal? I know you are not the Minister of Finance but...."
Michael Ashcroft,
"I think that you must put to the Prime Minister or the Minister of Finance. It's not for me to argue their political case."
Jules Vasquez,
"If you do leave, if it happens you leave this week - what will be your parting shot for the consumers?"
Michael Ashcroft,
"Well I would say to the consumers - as I would to any group of citizens in a country - you get the politicians you vote for."
Apart from that stinging final salvo, Ashcroft also told us that he doubts there will be any dividend paid this year - thus negating government's explanation that the constantly accruing interest on the $57 million will be defrayed by dividends from BTL. That interest now stands at about $3 million.