When Jeffrey Prosser agreed to buy BTL in April of 2004, he was given a guaranteed rate of return of 15% - meaning that no matter what the PUC or ratepayers said, the law would dictate that he realize a 15% rate of return on his investment. Now, credible reports suggest that Michael Ashcroft will be given the same thing, under the same condition, that he relieves government of some of the private Intelco debt for which it secretly gave a public guarantee. But today the Attorney General told us no such agreement has been made with Ashcroft, or at least not yet.
Jules Vasquez,
Do you think giving Michael Ashcroft a guaranteed rate of return will adversely affect phone users and consumers in Belize? You think it will drive up telephone rates?
Francis Fonseca, Attorney General
"No such thing has been done. There is discussion underway. What was done in the House last Friday was the government seeking authorization but no agreements have been finalized as yet."
Jules Vasquez,
But Michael Ashcroft is requesting what you all gave to Jeffrey Prosser, a guaranteed rate of return on his investment.
Francis Fonseca,
"There are draft agreements that have been put forward but no discussions has been had on that in Cabinet."
Jules Vasquez,
So the government has not agreed at this point to give Michael Ashcroft a guaranteed rate of return?
Francis Fonseca,
"No, not at this point. Obviously Mr. Ashcroft like any business person would want to make a profit on his investment in the company, but on the specific issue that you asked about a guaranteed rate of return, the government has not agreed to any such thing as yet."
More on what Ashcroft is offering, and demanding, will be disclosed to the Communication Workers union tomorrow when they meet with government representatives who will present the Government/Ashcroft plan.
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