Trouble is brewing in the public transportation industry tonight and the Novelo brothers are once again at the center of it. The Novelo brothers' National Bus Company has announced that it will be taking over the Bus Owners Cooperative Society, and what's more is that it'll be doing so with the consent of the Ministry of Transport. But throwing a wrench in those plans are the members of the co-op who say it is a hostile takeover. Like every bus story, there are at least three sides to this one and this morning members of the cooperative told theirs at a press conference.
Anna Young, Treasurer - BBOCS
"Yesterday evening at about 4:30 we received a letter from National Transport which states that, 'in pursuance to clause four of the agreement made between National Transport Services Limited and Belize Bus Owners Cooperative Society Limited dated 15th February 2007, National Transport Services hereby assumes the management of BBOCSL."
This is the letter which the cooperative received yesterday. It is signed by National Transport's manager David Novelo. It is only one sentence but it says it all: National Transport Bus Services will take control of the Bus Owners Cooperative Limited. The letter refers to a February 15th agreement which these members say their former Chairman Wayne Meyers entered into without their knowledge but more importantly - without their consent.
Anna Young,
"Mr. Wayne Meyers was not authorized to sign any contract with Novelo's National Transport. I cannot understand how this has escalated to this point here. As far as we are concerned, the membership did not agree to sign any document between BBOCSL and National Transport. Even after Mr. Meyers was told not to sign this document, he still went and signed a document on the 15th of February 2007. We do not know what this contract entails up until now. We have not even seen a copy of that contract."
That February 15th agreement was for National Transport to lease buses to the cooperative. But three months later, the Bus Owners Cooperative was broke and unable to pay National Transport. And so on the 20th of April, Chairman Meyers wrote this letter to the Transport Commissioner - agreeing to transfer the Cooperative's operations over to National Transport. That's the letter which National Transport is now enforcing.
The Cooperative's treasurer Anna Young says there is at least $200,000 which National Transport says it is owed and which no one can account for. She says these piles of receipts are proof that members were paying.
Anna Young,
"BBOC got these buses from National Transport and it was supposed to be on a lease basis but Mr. Meyers did not inform the members how much we had to pay at the end of the month or at the end of the week or whatever. They didn't tell the members anything. They were giving each salary at the end of the week and all the monies were supposed to be put into an account so that they can pay off whatever debt is owing. He was also deducting social security from each person's salary and that was not paid into Social Security. He said that he was paying off debts but as far as we know, nobody was paid. We don't know where the money is. When the new executive committee took charge, there wasn't funds in the account."
That new Chairman is Isabel Chan who took
over in April after Wayne Meyers resigned. Chan says when he took over, the cooperative's bank account was empty.
Isabel Chan, Chairman - BBOCSL
"The question is where has the money gone? Where has all the money gone? I don't know why today Mr. Novelo is saying that they will control the co-op."
Anna Young,
"They have not called us, they have not sent us any documents showing that we are binded to them."
These bus owners vow to fight what they call a hostile takeover and today they were joined at the head table by other small bus operators who sat in solidarity.
So what does this mean for commuters? Well not much. The co-op only has 14 daily runs. It was formed in January of 2006 with 56 members. It currently has about 30. The other members have jumped ship and are now working for National Transport. The Cooperative's members say they have sought legal advice.
The always glib David Novelo made himself unavailable for comment this afternoon but in a press release - they say that buses and capital were provided to the cooperative. It continues to say that when the co-op couldn't pay - it agreed to sign over operations to National Transport which is what is happening.
But Ministry of Transport spokesman Glenn Tillet told us this evening that they are taking it under legal review and a decision will be announced tomorrow. He says the Transport Department has been concerned about the affairs of the co-op because they are greatly indebted, not only to the Novelo brothers. He stressed that there are serious questions as to the Co-op's continued viability.
