All those deeds done at BTL, some dubious, some just downright dirty will soon be known after a landmark victory today in the Supreme Court of Belize for a group of minority shareholders. The court has ordered that an inspector should be appointed to investigate the affairs of BTL from the period April 2001 to February 2005.
As we first reported on January 12th (See Unions and Ashcroft Mount BTL Challenge), Michael Ashcroft, the Teachers and Public Service Unions and former Chairman Nestor Vasquez combined their shares to come up with 10% of the company, a minority empowered by law which would authorize them to ask the court to appoint an inspector to dig into BTL to see just what Prosser was doing.
Because Prosser still controlled the company in January, at that time, BTL opposed the investigation. But today, the now government-managed company, represented by attorney Fred Lumour welcomed the inspector, but on the condition that the review go back to April of 2001, just before Michael Ashcroft's Carlisle Holdings took over majority control. And that's just what the court ordered. And with the authority of the court, the yet-to-be-named inspector will go into BTL's books and back pages to check out lease agreements such as Prosser's deal to use BTL earnings to settle a lawsuit in the United States.
The inspector would also be expected to examine the Prosser buy out of Intelco, including the alleged assumption of Intelco's US$9.8 million debt from the Social Security Board, and the payment of management fees. It is estimated that in the last four years, the company paid out $30 million in management fees, first to Carlisle Holdings and then at a trebled rate to Prosser's ICC.
