BTL's board of directors has agreed to acquire its competitor Speednet, bringing an end to a tumultuous chapter of political and corporate intrigue that started to unfold more than a year ago.
The board of directors met this morning and by 2:00 this afternoon, a release was issued saying, quote, "the Board approved, with the support of senior management, the proposed purchase of 100% of the issued share capital of Speednet Communications Limited."
The statement makes no mention of the Public Utilities Commission-which must approve any such acquisition that will effectively create a monopoly. It simply says the acquisition is subject to, quote, "the satisfactory completion of continued due diligence and the negotiation of appropriate representations, warranties and other contractual protections for BTL as the buyer. Once negotiations advance to the definitive agreement stage, the Share Purchase Agreement will be submitted to the Board for separate review and final approval before execution."
Sticking to the script that's been touted throughout, the release says, quote, "the investment is to be repaid from Speednet's own operating cash flows. Based on current projections, the investment of $80 million has an estimated payback period of approximately 4.2 years..."
And while BTL is spinning the acquisition as a boon, the Chamber of Commerce, the unions, and the Opposition differ greatly. After news of the vote trickled out around 11:30 a.m., the NTUCB and the UDP mobilized immediately with an impromptu protest outside BTL's corporate headquarters on St. Thomas Street. Courtney Menzies was there and has this story.
Brian "Yellowman" Audinett, UDP Supporter
[shouting] We will pay our bill right here, don't make us get violent, don't tell us simpleness. Open the thing let's go or we will open it by force because we will pay for this back. I want to pay my bill, 615-5549."
"[shouting] I will create something here."
BTL Employee:
"You could try your luck."
Brian "Yellowman" Audinett:
"I will try my luck, I like try luck."
"So I can't pay my bill? $59 change is my bill, I need to pay my bill."
This was the scene this afternoon after the UDP calmly walked into the BTL compound to stand in front of the Digi Signature Store. Word got out that BTL's board members had quietly voted in favour of the proposed acquisition of Speednet, prompting a spontaneous protest by the Opposition Party and the NTUCB.
It wasn't a large crowd, but NTUCB president explained that it was important for them to register their discontent and disapproval:
Ella Waight, President, NTUCB
"We were not sure if the meeting would have been held today so we were in communication with persons to try and verify that. It was until this morning we were informed that yes the meeting would have been held today, we understand some members have actually joined virtually. So again I don't even know if they themselves were sure the meeting would have been held today. But besides that when we heard that it would be held today, we made the call out to the general council, to all the presidents, we know everybody is busy, NTUCB has presidents that have been working with their members, with projects, etc., so we made a call out still to join us today. If it was only me and Sister Lidia and Brother Jermaine here it would be that."
"But the purpose for us being here is to register NTUCB still not supporting the acquisition of Smart simply because what we had demanded for when it comes to consultation, meaningful consultation with the public, not just a group of stakeholders and some PUP representatives but with the public, did not happen. We also asked for another audit, an audit that could verify the financials of Smart, one year audit cannot support millions of dollars being purchased into a company, so we demanded that as well, but it has not been completed as far as we know."
And the president of the Belize Communications Workers Union came out to make it clear: they're not siding with BTL's board.
Jermaine Williams, President, BCWU
"What changed today is that when we actually had a vote, it wasn't the membership only that voted, it was the entire general staff that voted but of course other information came out whereby it shows that the value of Smart doesn't match up with what was presented to us by saying $40 million in capital and it's only showing $15 million, so it's just those figures I might be near or there with the figures but that's what it was showing. So this is where we continue to make a stand moving forward and to see how we can put a stop to this."
"We would like the Belizean people to come out and support when we call on them so we could make a stand. There's only certain people that benefits from these types of acquisitions so we need to make sure we stop it."
Reporter:
"Do you consider that the way things transpired today was in secret?"
Jermaine Williams:
"Yeah I believe it was in secret. As you know that the information that was up first when they had a different board of directors, information was given out on a regular basis but now this is a more tightened grip whereby the information won't come out as it used to."
And up until that point, the votes were only rumored-shrouded in secrecy much like the meeting-but now we can confirm that 8 members supported while 2 of them voted against the acquisition.
And the Leader of the Opposition lamented that 8 people will decide the fate of Belize's telecommunications sector.
Tracy Panton, Leader of the Opposition
"It is a travesty, it is tantamount in my view to treason. How could a government led board not consider a reasonable request that came from the people. We need an assessment. We need an independent evaluation, we need to know what the future value of this company looks like, there are too many unanswered questions and while 8 people have voted in favor and 2 voted no, 8 people will decide he fate of a utility company that has significant impact in terms of our national development, it's just like BEL."
"I think that there's enough evidence before us in the public domain that suggests that this government continues to operate not in the best interest of this country. The allegations of corruption are not just allegations, we have evidence to prove that there's significant corruption in the government. We have asked, we have met with the board and we have asked for disclosure of the details and they continue to deny the Belizean people answers that are important."
The demand for information is the loudest cry, but according to both Waight and Panton, it should have started with SSB's meeting on Friday.
Ella Waight, President, NTUCB
"That should have been done before this meeting today, that should have been done and I hope Belizeans realize that. That should have been done, they did what they're supposed to do and they got who supported and who did not support so that information should have been shared whether it would have been Friday evening on the news or yesterday. That way we would have known we need to go back to SSB so some of us would be at SSB and some of us at BTL today."
"We support investments at SSB that is how we avoid having to have an increase in our contributions, we support investments, but prudent investments. We are not sure of this investment because we did not get information we had asked for."
Tracy Panton, Leader of the Opposition
"The SSB represents the contributors to the fund, the people who sit on the board ultimately and they have a fiduciary duty and obligation to inform contributors to the fund what decisions they're making on their behalf, why they're making those decisions and how those decisions will impact the fund for future consideration. They failed to do that. It is indicative of how this administration conducts their business, they make decisions and then informs the public later."
But tonight we can tell you that it was in fact 2 SSB members that voted against the acquisition-Allan Pollard and Anissa Perdomo.
However, both leaders say that this is just the start as they prepare to take further action-time will tell if they can coalesce their forces.
