BTL's Communication Workers Union secured a major victory in court today when it was granted an injunction blocking Government from transferring any more shares to Michael Ashcroft and his companies. With that the Union has effectively stalled an $80 million transaction, what amounts to the largest privatization in the country's history.
The one and a half hour injunction hearing was held in the Chief Justice's chambers this morning. Michael Peyrefitte represented the Union, Michael Young represented BTL and Solicitor General Elson Kaseke appeared for government. Peyrefitte secured the injunction against strong protestations from the Solicitor General. That's no mean feat, because it effectively blocks, for the time being at least, a US$40 million sale depriving the government of hard currency that it most desperately needs. But Union Attorney Michael Peyrefitte says don't blame him.
Michael Peyrefitte, Attorney for BTL Workers
"The judgement of the Chief Justice is that the status quo is to be maintained and the government is not to transfer its shares, nor is the BTL Board to allow any transfer of shares pursuant to what the government may want. The critical point is that tomorrow morning we begin arguments as to what is a permitted person. So we are glad for the outcome because in the interim the government shares cannot be sold to E-com and then proceed to a hearing tomorrow morning on the determination of exactly what is a permitted person. The government of Belize cannot only not transfer its shares before tomorrow morning when we hear it, they cannot transfer the shares until the court has made a determination. So until judgement (is) given by the Chief Justice, nobody will do anything concerning the shares of BTL."
"Naturally the Sol Gen objected, he wanted pretty much the government to sell the shares to E-com by 11 o'clock this morning; I would say immediately they wanted to sell the shares. The problem is the government of Belize cannot itself determine who is a permitted person nor can the government of Belize do what it wants. The government of Belize has to do what the Articles of Association of BTL says."
Jules Vasquez,
With this injunction you're blocking one of the most important transactions presently for the government of Belize because it needs the foreign exchange in a urgent way.
Michael Peyrefitte,
"The Solicitor General's position indicated, in my view, that there was an urgency because there's a serious lack of financing in the country. However, that's not BTL's fault and while certainly we have to consider that, we also have to consider the workers of BTL and the people of Belize whom the Articles of Association clearly indicate were meant to be the owners of this company. So what government did in the past that has put itself in this position, is not the fault of BTL and its workers, it's the fault of them."
Jules Vasquez,
Mike you have pitted yourself against the executive needs of the government and the desires or the commercial desires of the Belize Bank. Are you intimidated by these forces that you and the unions are now facing?
Michael Peyrefitte,
"Do I look intimidated to you? We cannot allow the government to do what it wants with a public utility that belongs to all of us. The Articles of Association were designed to ensure that the company is controlled and owned by the people of Belize, that's what we are fighting for."
Jules Vasquez,
That hearing starts tomorrow, are you confident in that you are arguing against a very formidable attorney, the Solicitor General, you are a young attorney. Are you confident that you can win out this point which has been pending for let's say 15 or 16 years?
Michael Peyrefitte,
"I just won that one, didn't I? And I would like to think that I am formidable as well so at the end of the day its not my decision, at the end of the day it's the decision of the Chief Justice."
Elson Kaseke, Solicitor General
"I am not a person who likes to go in front of cameras and make statements."
As Peyrefitte noted, that hearing will start tomorrow before the Chief Justice.
