Tensions were high in the Chief Justice’s courtroom today as attorneys for the Ashcroft empire appeared to ask the court to exact their pound of flesh from Krem Radio. The dispute goes back to a transaction in June 1994 when Krem borrowed $100,000 from Sagis Holdings, an affiliate of Belize Holdings, the Ashcroft corporate mother ship. As agreed to in June of 1994, the deal was that $75,000 was to be re-paid with advertising on Krem, and the other $25,000 would be repaid with fifty thousand shares in Krem Radio – transferred from Evan X Hyde to Sagis Limited.
But Sagis was never registered as a shareholder in Krem Radio and that was that for about 12 years until 2007. That’s when Sagis Director Phillip Osbourne told the court, he was moving offices and discovered that he had no share certificate for the 10% holding in Krem. And according to Krem’s lead counsel Michael Young Osbourne had no shares because by Krem’s articles, those shares could not have been transferred.
Michael Young, Attorney for Krem Radio
“The pre-emptive clause says that you have to offer it to other shareholders before you can proceed with a transfer to a stranger. The pre-emptive clause is contained in the articles, the articles are in the company’s registry, and Sagis, that is the Ashcroft company should have checked that, they did not, and therefore the transfer was a nullity as far as we are concerned.”
Janelle Chanona, News 5
“Was there some onus on your clients to say, ‘look I can’t sign an agreement on this because I know my articles of association say I have to offer it…’”
Michael Young,
“I have already indicated that there were omissions on the part of several of the parties. The point is that this is something that they slept on from 1995 really until 2007. And then the mystery remains why all of a sudden come to claim these shares. We say that there is some mystery in that.”
Jules Vasquez,
Was it actuated by malice?
Michael Young,
“That’s what we are saying. It is the only, we think, logical explanation. And here it is that Krem is not a company that is just bursting with cash and you leave that company alone and all of a sudden, you come and say that, ‘yes I am a shareholder.’ Then you have to infer from the circumstances, together with what has happened on the programs and the clear fight, well not really fight, but the very very strong criticisms that have come from the Kremandala structure against the Ashcroft group of companies.”
Jules Vasquez,
If you aren’t able to prove your point of malice, for example because you cannot find that Lord Ashcroft is in anyway an owner of any part of BTL, although we know we know what we know?
Michael Young,
“Yes, yes indeed. When you say corporate wrangling, I think what you are really referring to is the basket of companies that the Ashcroft group generally deals with and so of course one was surprised to hear that Lord Ashcroft does not really own any substantial interest in Belize Telemedia. But that is something that is known, that they have a group of companies and identity of the owners of those companies, many times is just simply not known or you can’t reach it.”
Krem is defended by Michael Young and Lois Young Barrow. Sagis’s case is presented by Vincent Nelson, a British Queen’s Counsel along with Elson Kaseke. The case has been adjourned until tomorrow.
There are a few notable events in today’s hearing. First, things got decidedly chippy when Michael Young cross examined Phillip Osbourne and asked him why as attorney for Sagis did he not first read Krem’s articles to find out if the shares were transferable. Second, when former Belize Holdings CEO Ian Robinson was walking to the witness stand to testify – he slipped on the polished floor, and fell to the ground, flat out on his back. He got up quickly and was not hurt.
Third, things again got a little testy when Sagis attorney Nelson Cross examined Charles B. Hyde – a Kremandala director and Evan X’s father. The 84 years old CB Hyde, said that it was a deal arranged by Dickie Bradley and Said Musa – and that is bore a direct connection to the PUP. He did not accept Nelson’s assertion that a share transfer had been effected and this caused a little back and forth between the two. So much so, that when X Hyde took the stand after that, he snapped at nelson, and apologized to the court for being what he called “so energized” – but explained that he was reacting to what had happened with his father on the stand.
Mose Hyde,
“It’s on I guess, that’s about it. It continues this afternoon.”
Janelle Chanona, News 5
“Do you maintain that this was an act of malice to come after you all after 13 years?
Mose Hyde,
“Absolutely.”
Saying he understood “filial loyalty” – the Chief Justice granted a short recess for X Hyde to decompress. The day proceeded mostly uneventfully after that. As we said, it was adjourned until tomorrow, and we’ll have those details in our next newscast.
