And while the Carnival matter finally has some accord, discord persists in the telecommunications industry. First, there's the matter of the bankrupt Intelco and its publicly secured debt which is still in jeopardy. But that's an almost minor matter compared to a ballooning crisis that will come to a head within the next two weeks.
The long and short of it is that when government bought out Michael Ashcroft's 52% holding in BTL for US$57 million it did so by taking on a one year loan from the International Bank of Miami. When Jeffrey Prosser finally bought over BTL in April, instead of paying off the loan, he simply took it over. Now that loan is coming due in two weeks, and there are concerns that with Prosser facing money constraints in the Virgin Islands and law suits amounting to a three quarter billion dollars in the United States he might not be able to pay it.
That should be his problem, but in fact it is ours. Contrary to repeated denials by Prime Minister Said Musa, it turns out that Belize is guaranteeing that loan, which means that if Prosser can't pay, then the government of Belize must. Of course, GOB can't either, but while Prosser, with his worries may be able to slide past a default, the sovereign government of Belize can hardly afford to do so. And so today, we ambushed the Prime Minister as he left love fm and asked him, can Prosser pay? and if he can't, who will?
Hon. Said Musa, Prime Minister
“I believe it is in his interest to make sure he finds that money. So I wouldn’t speculate and go further than that.”
Jules Vasquez,
But he has two very big lawsuits pending, one with the RTFC and one with Emerging Communications for $750 million total on claims against him. If he is unable to pay this US$57 million, what will happen to BTL? Will it revert to Michael Ashcroft?
Hon. Said Musa,
“Not necessarily. I think the government will have to examine its options. One option that’s being already canvassed is whether we re-nationalize BTL and give the opportunity to Belizeans to take full control and ownership of it. The question is whether they can raise the capital to do it in time.”
Jules Vasquez,
I have said throughout, and you have denied this throughout, but I have said that Belize holds the guarantee on that US$57 million with IBOM. Is this the situation that we are facing now? That we hold the guarantee and that if he doesn’t pay by I believe the end of November, or sometime between now and then, we will have to pay or will have to find someone who can come up with that money quick and fast?
Hon. Said Musa,
“They do hold a note yes and the government will then be in a position of having to find that money, yes. Whether we take it from, as you say, another buyer such as the Carlisle Group or whatever but [Pause] that’s about the timetable as you rightly said about the end of this month yes.”
Jules Vasquez,
Is it a frightening reality or a shameful reality that after all this we may well have to end back up with the Michael Ashcroft who you so demonized and who you said destroyed Intelco’s chances and who was such a hard nut to break in trying to get lower rates.
Hon. Said Musa,
“Well that's life noh. That is life. I don’t we can afford to be emotional about it. I am sure if I took a poll out there perhaps the majority of Belizeans would say anything but the Lord noh. So we will see what goes.”
We will take that poll and you can participate by voting and tell us whether you think Michael Ashcroft should buy back BTL if the Prosser deal falls through.