This afternoon in Belmopan, and continuing up to late this evening, representatives of BTL's Management and Workers' Union were in the Cabinet room meeting with a government team led by the Prime Minister. They are trying to work out a plan to take over BTL, working along with Michael Ashcroft.
As we understand it, the present plan is for a Belizean group led by BTL employees and presumably the Sunrise company to take over 37% of the company's B shares, while Michael Ashcroft would take over 15%. That 52% accounts for the Carlisle shares and then the plan is to then also take over Prosser's shares, which is another 33% of the company.
It is a still unclear and quite complex arrangement that is still some ways away from being finalized. As we understand it, at today's meeting, the government has agreed to have the union's legal advisor look at the document before anything is signed. And what is in the agreement? Well we don't know if the final version is like the initial version, which has been posted on the internet at the anti-government site freebelize.org, but if it is, then there's much eyebrow raising material.
Two nights ago we told you about some of the perks in the proposed acquisition agreement for Michael Ashcroft as he bails the government out of an impossible fix. Those perks include a break on stamp duty, buying the shares back slightly cheaper than he sold them and getting no taxes charged on dividends. Well, there is also what's called a settlement agreement in which the Carlisle Group agrees to drop all claims under its buyback agreement and to drop arbitration proceedings against the Government in London. In return, government makes some rather grand concessions, and one of them is sure to draw the ire of the unions, and, pretty much, anyone who's fed up with high taxes. Under the heading "consideration," government agrees to write off any back taxes owed by the Carlisle Group. That, we presume would include the $17 million in taxes owed by the Belize Bank that the unions keep referring to.
Specifically, the settlement document says that "the government confirms that each member of the Carlisle Group has satisfied in full any and all liabilities, assessments and claims...arising in respect of business tax and or income tax in respect of all periods up to and including 31st March 2005." The document goes on to say that the waiver extends to the Belize Bank Limited, making it clear that government must confirm that it has satisfied all its tax debts. That would mean foregoing millions of dollars in revenue, and it asks much of a cash strapped government but it seems to be the price that Carlisle must exact for bailing government out of the disastrous BTL deal.
Again, this settlement agreement was a proposal leaked out of government, and it is not at this point binding in any way, and it unclear if it is still on the table. If it is, it certainly will be a sore point for the unions which have been badgering the government to collect this $17 million in back tax before it assesses new taxes.
In all this gloom, the one piece of good news is that one thing that has changed is that the Ashcroft Company which would buy over BTL is no longer 'Pillow Talk', it has now been given a far more palatable title; it is called E-com.
