According to sources, BTL is in the final stages of completing its acquisition of SPEEDNET (SMART) as well as the country's three largest cable networks: Centaur, Central Television and Internet, and Southern Cable Network. The acquisition package - which sources say will cost the company upwards of 150 million dollars - will establish BTL as a national telecoms and cable monopoly.
BTL is a majority state owned private company and questions have arisen because the 9 figure acquisition has not yet been taken to the BTL Board of Directors for input, review or approval - sources tell us. Additionally, it has not been taken to Cabinet for its input - even as the acquisition could have a significant political effect. Today, Senior Minister Francis Fonseca said he knows nothing of it:
Francis Fonseca, Minister of FAFT
"Certainly that issue has not been brought up to cabinet. So I would not know anything about that. You know, it certainly has not been discussed in cabinet to date."
Courtney Menzies:
"We've also been told that the board has not been consulted, even though the period of gestation of the of this deal has been ongoing. What do you make of this? The fact that, you know, it's sort of happening in the dark."
Francis Fonseca, Minister of FAFT
"I really can't comment because I don't know, I don't know if you're saying that's the fact. I don't know that to be a fact. I would think that the board of the board would be consulted and that the board would be apprized of, of the developments, if in fact, those developments are taking place. So I wouldn't be able to comment beyond that. I can speak, as I said, in terms of cabinet, we certainly have not been, any information on this issue has not been shared with us."
Courtney Menzies:
"If this deal comes through, then it becomes a, it creates a monopoly and it was a government who initially broke up the monopoly, giving licenses to both Speednet and Intelco, you know, way back when. So what do you make of it that we might now have another monopoly in telecommunication sector?"
Francis Fonseca, Minister of FAFT
"Well, you're asking me to speculate. I mean, as I said, and I have no information on this matter. You know, I imagine at some point the matter will be shared if it in fact happens, there will be some discussion in cabinet. So once I get that information and I understand what is being proposed, obviously that will be in a better position to offer a comment. But at this time I have absolutely no information."
And while he has no information, most in the business sector know that the Prime Minister's family stands to benefit substantially. They own Centaur Cable, as well as an estimated 20% of Speednet, and a reported 50% of Southern Cable network. Those holdings could net them sales proceeds in the tens of millions of dollars in this single transaction.
No coherent public explanation for the acquisition has been offered, and - we are told - neither has any been given to the BTL Board of Directors. But, the principals have told sources that there is no lump sum payment and the acquisition will be financed through additional revenue earned by BTL as it takes over the companies' customer base.
On the other side, questions have been raised about the multiple conflicts of interest arising. One of the primary beneficiaries of the sale is the Prime Minister's family owned business. The Prime Minister also appointed the BTL Chairman to the board as well as the super majority of board members, either directly or indirectly. Third, the BTL Chairman, Markhelm Lizarraga is the brother of the owner of CTI cable, Pedro Lizarraga. Fourth, the Prime Minister also appoints the members of the Public Utilities Commission, which regulates the utility sector. He also appoints the members of the Belize Broadcasting Authority which oversees the cable industry.
It is unclear at this time what due diligence assessment will be presented to the BTL board, but, according to our sources, no independent valuation of the phone and cable companies was done by an international economic consultant like NERA - which recently valued the Fortis dams for the Government of Belize before it acquired them.
