Two weeks ago government moved decisively to take over BTL and now they're threatening to do the same with BWSL. Yesterday at the national convention, the party passed a resolution which vows to re-examine the privatization of BWSL. We note that it has been a problematic privatization from the outset, with the owners, Dutch Company Biwater Cascal arguing that it had been sold, essentially, a 'puss eena bag' and that there were material misrepresentations in the prospectus. It got worse after that as government slipped through a statutory instrument guaranteeing the company a 15% rate of return. With that, the company said it needed to increase rates by 32% to get its money but an independent international expert found that a 17% rate increase would be enough. Now, BWSL is seeking judicial review in a Belize courtroom, and, just like Michael Ashcroft, is taking the government before an arbitrator in England. That's right, in another extraordinary buy-over hidden clause, government agreed to surrender its sovereign rights and have arbitration be heard in the United Kingdom. Well, now it seems GOB has had enough of much of what has been its own making. Deputy Prime Minister John Briceno explained what the government and the party want from BWSL.
Johnny Briceno, Deputy Prime Minister
"BWSL has been doing better than they projected in their cash flow yet they came in to ask for a 32% increase in water rates. After going through a long process, they got 17%, now they are asking for judicial review. We are saying that they are wrong; they are making money and they should not take advantage of our people."
Jules Vasquez,
Will you all nationalize BWSL? Is that the effect of the resolution that you all passed today?
Johnny Briceno,
"Its not a matter of nationalizing BWSL, it's a matter of letting BWSL understand that we will not allow them to continue to take advantage of our people. There are cases in Belize City where they are charging sewer rate charges because the lines run in front of the people's houses yet they do not have access to it and we are saying that's wrong and they cannot charge our people. We need to work together with the Public Utilities Commission to ensure that there's proper regulation and BWSL needs to understand that they are here and we have no problems with them earning a healthy profit but we will have a problem with them if they want to continue to take advantage of our people."
Jules Vasquez,
But isn't this the same government that gave them a 15% guaranteed rate of return? So they want their 15%.
Johnny Briceno,
"That's the tricky part with BWSL, that they are trying to hold on to this 15% rate of return but when you look at their exact cost they are making a 15% rate of return."
The judgment on the judicial review matter in the Belize courts is due on February 25th. The British arbitration heating has been stayed until that judgment.
7NEWS produced for broadcast by News Director Jules Vasquez
Edited for the internet by Keith Swift
