On Wednesday when government moved decisively to take over BTL and oust Jeff Prosser it left many, many questions unanswered. And central among them is how government will pay its US$50 plus debt to the International Bank of Miami, which is due in 11 days. What we do know is that government cannot pay so it must either find someone who can come up with the kind of cash in a hurry or roll over the debt. A roll over sounds simple but in November it cost government a reported US$17 million that had to be taken from the reserves and a bond sinking fund. What's going to happen this time and who's it going to cost, we put those questions and many others to the Prime Minister today.
Said Musa, Prime Minister
"Government has taken over BTL."
Keith Swift,
"Who is going to pay for BTL?"
Said Musa,
"Time will tell. As the press release made clear, the government will do its best to give Belizeans every opportunity to buy shares in BTL."
Keith Swift,
"Mr. Prime Minister we know time is not on your side, you have about a few days before the loan with IBOM becomes due again. Will government roll over that or will you be able to come up with the money, what are going to do?"
Said Musa,
"The timetable requires the government to go to the National Assembly and if necessary that is what we will do, for a resolution to authorize the actual extension of the rollover for the TBOM debt."
Jules Vasquez,
"The last time you extended it we had to leave behind US$17 million, we are told, and some raids on the reserve had to be done and we had to steal into a sinking fund, reports are. Will we have to leave money behind again?"
Said Musa,
"If the government rolls over I don't believe so, no, but I'm not absolutely sure about that."
Keith Swift,
"Why did the government grant Jeff Prosser all those concessions?"
Said Musa,
"Well first of all let me say I don't consider them unreasonable 'concessions' in light of the commitment that he had given and the extent of his investment in Belize. It wasn't confined, from the discussion, just to BTL, it included taking on of course the assets of Intelco and so on."
Adele Ramos, AMANDALA Newspaper
"Why didn't you entertain his request for mediation?
Said Musa,
"Because we believe that there is no dispute. Once he has defaulted in completing the transaction the government's position is that we are under no obligation to."
Adele Ramos, AMANDALA Newspaper
"He is blaming government as the reason why he can't get the money to pay for the shares."
Said Musa,
"Yes I know that is his position but we are saying that the crucial issue at work here was the need for payment and there was a default after extensions were granted. And so if there is no payment, why should government be obliged to do anything."
Keith Swift,
"Was Jeff Prosser given all those concessions so he could take over Intelco, buy it, and bury the disaster that it was?"
Said Musa,
"Well that's how you would phrase it but it certainly entailed ensuring that BTL would be able to expand and carry out its services, and the Intelco matter, yes, would be largely dealt with; there were many factors that were at work here."
Rene Mendez, LOVE FM
"Has Mr. Prosser relayed anything to government as such with all these developments now happening?"
Said Musa,
"His attorneys have been in touch with us and have requested a meeting."
Keith Swift,
"Can it be interpreted that Prosser was given all of these concessions because of the fact that he agreed to buy Intelco?"
Said Musa,
"That is one interpretation. What concessions that we gave him you mean?"
Keith Swift,
"The 7 concessions he was given because he promised to buy Intelco and you would have given him just about anything if he would bury Intelco for government."
Said Musa,
"I can go into the concessions if you like. At the time when the concession on voice over internet was given to make it unlawful, at that time there was a move afoot globally to outlaw voice over internet. Things are moving so rapidly with the changing technology in telecommunications that since then, February of last year, no longer can this be properly policed. So it would be futile for the government even to pass a law outlawing VOIP. It won't make any sense now to do it and I think both Mr. Prosser and whoever else would recognize, and indeed in subsequent discussions he accepted that there was no point in pursuing that."
Keith Swift,
"Mr. Prime Minister are you disappointed in Mr. Prosser?"
Said Musa,
"I am. I am deeply saddened that the government and myself put that trust in his company and yes I am saddened that they were not able to carry out their side of the bargain."
Adele Ramos, AMANDALA Newspaper
"What is the likelihood of BTL going back to Mr. Ashcroft? We've heard talk of a buyback agreement. What's the likelihood of that happening?"
Said Musa,
"The legal complication here, or issue here, is the fact of Carlisle, Lord Ashcroft, maintaining, and indeed he is started action in Britain to this effect, that as part of the agreement he made with government, there was an option clause for him to exercise. That is an issue now for the lawyers. I wouldn't want to say more at this time but certainly our attorneys are looking at it as well."
Jules Vasquez,
"Did you take advantage of Jeff Prosser by leaving him saddled with the Intelco debt to RBTT, US$27 million, and he won't get BTL?"
Said Musa,
"No, we had nothing to do with that; that was entirely a decision of his own."
And to add one more variable to the bonfire, 7NEWS has been informed that the Communication Workers' Union has approached government to propose that employees buy over BTL.
