When controlling interests in BTL was sold to Jeffrey Prosser on March 31st, government announced that it had sold all its holdings in the phone company, amounting to 82% of the company - a sale that earned government US $89 million.
Since then, the Public Service and Teacher's Unions have pounced on GOB for illegally including over 500,000 of their shares in that sale.
Since that claim emerged, GOB has backtracked, saying that it never sold the union shares. But there was no proof of that until today when the unions went to Belmopan to fight for their shares. But as Alfonso Noble found out when they entered with their swords the Prime Minister met them with an olive branch, a most unexpected turn that made everything 'topsy turvy.' I was there and here's how it went.
Alfonso Noble Reporting,
You could almost hear the jeopardy theme song as there was waiting, and still a bit more waiting in the cabinet room this afternoon as the BNTU and the PSU leadership couldn't decide whether or not to accept the share certificate that would dispel all rumors that the BTL shareholding of these two unions had been sold. After 15 minutes of leaving the prime minister to wait, in the end they calmly walked in and accepted. PM Musa began by settling the matter once and for all.
Hon. Said Musa, Prime Minister
"The status of the shares in BTL held in trust by government for or on behalf of the PSU and BNTU has been the subject of much public discussion and speculation following the recent sale of shares in BTL to ICC. When I last met with union representatives I assured them that the shares and dividends earned were available to them. Last Friday in the House of Representatives, in an answer to a question, I re-iterated that the shares were not sold. Today on behalf of government I propose to provide concrete manifestation of this in order to bring to an end once and for all any doubt that anyone may entertain that the shares are available to the unions and that the savings accrued from the dividends are available in the savings bank at the Treasury."
"At the end of the financial year March 31st 2004, the BTL share proceeds savings account at the Treasury, savings account number 2780, maintained a balance of Belize Dollars $1,613,339.26."
So complete with dollars and cents accounting the share certificate representing 567,666 shares was handed over to the unions' leadership. Musa says the decision was made to make the unions responsible for their own money.
Hon. Said Musa,
"The government has decided that the unions, the management of the unions, should now take on the responsibility of managing the trust funds of these shares. So we have decided to transfer the shares directly into the name of the two unions jointly, the PSU and BNTU. This in effect will bring to an end government's trust obligation of holding the shares. It will now be the responsibility of the management of both unions to manage these shares. They and their membership will decide if and when they want to sell them or if they don't want to sell that is entirely a matter for them."
And with the passing on of these big bucks the unions now lay to rest any speculation whether the shares were sold or not. Now they have possession of just fewer than 5% percent of BTL. And what will they do with it? Well, they still have to decide.
Anthony Fuentes, President BNTU
"Our plan as I mentioned earlier is to go back to our membership and we will share with them this information and at the of the day the membership of our organization will decide whether we will sell our shares or whether we will keep our shares."
Dylan Reneau, President PSU
"We will have to take it back to our membership. Clearly we have to go through all the options that we have but our position right now is that we will not sell."
Alfonso Noble,
"So you will not sell? Jeffrey Prosser says he doesn't want to own a piece of a company, he wants to own an entire company and he doesn't want to be declaring dividends to nobody. He wants to be accountable to only his accounting office. Your response to that?"
Dylan Reneau,
"Well Jeffrey Prosser will have to come and deal with the unions and then we will move that process forward. We can't do anything except that."
Alfonso Noble,
"So you will hold on to your shares?"
Dylan Reneau,
"We will hold on to our shares."
The union has already made plans for the monies for the dividend receipts that have accumulated since 1995 that amounts to $1.6 million saved up since 1994. This year's divided to be issued in September will amount to another $87,000. If you're wondering how the union got the shares in the first place, it was given to them during the Esquivel administration in lieu of a promised pay raise.