The Blue Telecom group Makes New Bid For The Bahamas Telecommunications Company - BTC

Blue Making New Bid For BTC

 

 

 

 

By Candia Dames

candiadames@hotmail.com

Nassau, Bahamas

29th November 2004

 

 

One year after it was kicked out of the race to purchase a minority stake in The Bahamas Telecommunications Company (BTC), the Blue Telecom group has made adjustments to its bid to try to meet the government's expectations and the reality of the existing value of BTC.

Blue's President Lindbergh Smith, in an interview with the Bahama Journal on Sunday, said his company still has the right ingredients to become the long-awaited strategic partner in the state-owned telephone company.

The Bahama Journal contacted him after Minister of State for Finance James Smith indicated that while there is no 'formal privatisation process' in place, the government is still open to favourable bids.

Mr. Smith, the Blue executive, also said the need to privatise BTC is even more urgent at this time.

"I think it's a necessity now based on the competitive forces that exist in the market place in The Bahamas", he said.  "It's evitable that the government has to get out of the telecom business in order for the company to be on good footing to compete against entities like SRG (System Resource Group) and Cable Bahamas."

SRG recently announced that it is starting its business and residential services and intends to compete head on with BTC.

SRG President Paul Hutton-Ashkenny said his company's entrance into the telecom industry is an indication that the government sees the liberalization of the telecommunications sector as a critical pre-condition for achieving economic development in the country.

Industry sources say that it is most urgent that the government recognize the extreme dilemma that the entire telecom industry and the financial and business community would suffer if the government does not move quickly to relinquish its control of BTC and put it into the hands of an entity that has the financial capabilities, management and technical know-how to allow the company to be able to compete in the local market against SRG, Cable Bahamas and other competitors that are soon to come.

They say that based on the contract proposal issued to The Bahamas Communications and Public Officers Union last week, it is clear that the board and executive management team of BTC recognize that the company has to be repositioned for competition.

The proposal calls for the benefits now enjoyed by BTC employees to be slashed up to 60 percent.

"We are sure that the shareholders of Cable Bahamas and SRG are laughing all the way to the bank because of the government's reluctance and procrastination in the privatisation process of BTC", said one industry insider.

Minister Smith, meanwhile, said the move toward privatisation is an ongoing exercise.

"It's just that it's not going to be done in the way it was done originally", he said.  "If a prospective buyer came along with the right attitude and the right price, I'm sure the government would be obliged to entertain the bid.  So the process may have come basically to a halt, but not the intent."

He said that BTC has to "continue to do things to develop and expand its managerial capabilities, develop its staff, while at the same time look for efficient ways of government having to divest its interests."

Mr. Smith (Blue President) believes that now is the time for the government to move ahead with the privatisation process.

"For the board and management of BTC to assume that they are in a position financially and futuristically to compete in a smaller entity like SRG or Cable Bahamas is very fool hardy", he said.

In his budget communication to parliament in May, Prime Minister Perry Christie made it clear that the recent termination of the privatisation process does not mean that the government has abandoned the privatisation of BTC.

"On the contrary, the privatisation of BTC remains an important item of my government's economic agenda", he said.  "Accordingly, the privatisation will be re-launched as soon as circumstances reasonably allow and on a basis, moreover, that will take adequate account of the lessons that were learned in the earlier process."

Educating Women on The Deadly Disease HIV/AIDS in The Bahamas

The HIV/AIDS transmission rate in The Bahamas is an important success story

Rapid Growth Of HIV In Females

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

29th November 2004

Women in The Bahamas have caught up with men in new HIV cases, prompting serious concerns for health officials.

Although the number of new HIV infections declined for a third consecutive year in 2003, the fact that more and more women are being infected with the virus that causes AIDS means that there needs to be renewed focus placed on educating women on the deadly disease, according to Nurse Rosa Mae Bain, director of the HIV/AIDS Centre.

Last year, 289 cases of HIV were reported. This compares to 332 in 2002- 385 in 2001 and 404 in 2000, according to health officials. Around the world 38 million people are infected.

In the early years of the epidemic, men far outnumbered women in new cases.

But that has changed.

The ratio of males to females is now 1:1. The disturbing trend is a global one, according to health officials.

So it is no coincidence that women and girls are the focus of this year’s World Aids Day on December 1.

“We as women have caught up with and in some countries have even past the men,” she said.  “Consequently, we need to focus in on women being able to negotiate safer sex practices.  That is crucial.  We need not to be getting infected.”

She said, “Women, because they account for all these single homes are the people out there providing that nurturing to the bulk of our children.  So the message that we want to give is ‘look, you men support our women.  Provide them with the support so that they can use preventative methods so that they do not become HIV infected’.”

Nurse Bain said women are particularly vulnerable because they tend to allow their partners to take the lead in safe sex practices.

Around the world this week, it will be a time of remembrance for the millions of people who have died from AIDS.  It will also be a time to focus on the 14 million children who have been orphaned by the disease.

Nurse Bain said AIDS orphans are also a serious concern in The Bahamas, but she said new drugs are making it possible for people to live longer, which means that the numbers of orphans are getting smaller.

Because of antiretroviral medications, she said, there are also fewer and fewer babies who are becoming infected with HIV from their mothers.

The percentage is now down to 3 percent, according to Nurse Bain.

“If we look at the statistics closely we would find that not one mother who attended the clinic, who took her medication, who kept all her appointments had a baby born HIV positive,” she said.  “That three percent was because we had a cohort of pregnant persons who did not attend so consequently they did not receive the medication and their baby was born positive and that’s why we’re still at three percent.”

She said the reduction in the transmission rate in The Bahamas is an important success story.

Another success, she said, is that the children who were born with the virus are living to see their teen years.

“Yesteryear, most of our children died before their first birthday, but with the use of anti-retrovirals or the use of AIDS medication as we call it- these children now look good, they feel good, they’re in school and we need to go to another level and provide them with a home setting.” 

Caribbean Community (CARICOM) Secretary-General on the HIV/AIDS Epidemic in The Region

Caricom Secretary-General Calls HIV/Aids 'Clear And Present' Danger

Bahamas Information Services

29th November 2004

BASSETERRE, St.Kitts/Nevis - Caribbean Community (CARICOM) Secretary-General, His Excellency Edwin Carrington, says the region is locked in a 'deadly stranglehold' by the HIV/AIDS epidemic that is likely to annihilate a sizeable portion of its workforce if something 'radical' is not done to reverse the trend.

Mr. Carrington said the epidemic has already cost regional economies more than $50 million directly and indirectly, in addition to the large numbers of nationals who have died as a result of complications from the disease.

(The monetary figures were obtained from a survey conducted by the Health Economic Unit).

According to the latest UNAIDS figures, the Caribbean is the second-most affected region in the world, trailing only sub-Sahara Africa.  Statistics further show that AIDS has become the leading cause of death among persons aged 15-44.

The UN AIDS report also shows that there have been 53,000 new cases of adults and children infected with the disease in 2004.

"We are entering times of clear and present danger and this is particularly threatening and disturbing, especially now that we in this region are optimistically poised to implement the CARICOM Single Market and Economy (CSME)," said Mr. Carrington.

"HIV/AIDS is a destructive force that can undermine the whole edifice of the CSME.  The epidemic of stigma and discrimination fuels human and economic disaster if not checked as a matter of urgency," he added.

Mr. Carrington said there is an accumulative 500,000 infected persons living with the disease, including the 53,000 persons who acquired the virus in 2004.

He said an estimated 40,000 persons have died from the disease, with more than 20,000 children expected to be left orphaned by the year 2020, as a result of the disease.

The Secretary-General said Persons Living with HIV/AIDS (PLWHA) represent a significant part of the labour force between the ages 15-44, considered the most productive years.

"These trends raise alarm bells for us in the Caribbean," said Mr. Carrington.  "All the indications are that we are locked in a deadly stranglehold by an epidemic that is likely to annihilate a sizeable portion of our workforce if something radical does not happen to reverse the trends.'

Mr. Carrington said HIV/AIDS is a complex, developmental issue that is not confined to any one sector, organization, agency or individual and that no single ministry, organization or agency can successfully combat the disease or the stigma and discrimination attached to it.

He said those countries in the region that have achieved successes in the war on AIDS ‐ The Bahamas is recognized as having one of the greatest success stories in the Americas with regards to treatment and education ‐ have achieved those results because of multi-dimensional approaches to the epidemic that combine the human and financial resources of government, the private sector, the public service, religious organizations and civil society groups.

"Do we truly believe in the multi-dimensional approach or are we so caught up in defending our programmes and positions that we fail to be honest with ourselves and more importantly to those who really matter, people living with or affected by HIV/AIDS?"  Mr. Carrington asked.

"We are dealing with real people, humanity, and a condition that is primarily spread by the most intimate of acts.  People will deal with this differently and we must be prepared, in keeping with our respective callings and mandates, to offer assistance and more important, to offer leadership as individuals and as organizations.

"We must not be consumed with fighting over turf, status, ideologies and philosophies because while we are so consumed, people are dying, children are suffering, our economies are collapsing," the Secretary-General added.

Meanwhile, UNAIDS Executive Director, Dr. Peter Piot, said there are signs that stronger prevention efforts in The Bahamas and Barbados since the late 1990s, could be nudging HIV-infection levels lower.

Dr. Piot warned, however, that the lack of good-quality HIV-surveillance data in most Caribbean countries is hampering the ability to design and run potentially effective prevention programmes and will almost certainly undermine efforts to expand access to antiretroviral treatment.

"As the region with the second-highest rate of HIV-prevalence in the world, AIDS is already having a major economic impact in the Caribbean," said Dr. Piot.  "But AIDS is more than just a disease, it's a threat to human security and development (that is) unique in human history.

Dr. Piot said social, not just technical challenges will need to be addressed if the countries of this region are to bring their epidemics under control.

"The stigma and discrimination drive AIDS underground.  The increased vulnerability to HIV can hamper our efforts to reverse its spread.  If children with HIV are turned away from school as happened in Guyana last month and if men who have sex with men are killed as happened in Jamaica, then fear rather than fight will reign and whole communities will suffer," he said.

Sidney Stubbs can Only Hold On to His Holy Cross seat in the House of Assembly as long as He has An Appeal outstanding in His Bankruptcy Matter

Chief Justice Sir Burton Hall indicated that if there is an appeal before the Privy Council, Mr. Sidney Stubbs needs to pursue that before he can ask the Supreme Court to annul the bankruptcy order issued against him in March

Stubbs Appeal In Doubt

 

 

 

By Candia Dames

Nassau, The Bahamas

29th November 2004

 

 

Nearly one week after Chief Justice Sir Burton Hall adjourned the Sidney Stubbs bankruptcy matter, officials of the Progressive Liberal Party say they have still not been able to confirm whether the Holy Cross Member of Parliament has an appeal before the Privy Council.

His attorneys could not say last Tuesday whether there was in fact an appeal and have not yet given an indication that there is one.

While the legal team filed a notice to appeal to the Privy Council in September, it still remains unclear whether it moved ahead with that intent.

A PLP official told the Bahama Journal that the uncertainty surrounding the alleged appeal is creating frustrations for the party, which is seeking to speed up the legal matter.

When he adjourned the case last week, Sir Burton indicated that if there is an appeal before the Privy Council, Mr. Stubbs needs to pursue that before he can ask the Supreme Court to annul the bankruptcy order issued against him in March.

When asked on Sunday whether he has an appeal before the Privy Council, Mr. Stubbs told the Bahama Journal that he does not speak to the press and any statement in this regard would have to come from his attorneys.

Up to last week, attorney Wayne Munroe, who represents Mr. Stubbs’s former creditor, said he had received no notice from the MP’s counsel that an appeal was indeed active.

The hierarchy of the PLP is reportedly concerned that the matter may be dragging on too long and was considering whether to indicate to Mr. Stubbs formally that the party needed to start preparing for the eventuality of a bye-election.

Mr. Stubbs can only hold on to his seat in the House of Assembly as long as he has an appeal outstanding in his bankruptcy matter.

It could be why he and his legal team are for now keeping quiet on whether they actually have an appeal active.

In September, the House of Assembly approved a resolution granting him an additional six months to pursue an appeal.

Last Tuesday, Sir Burton made it clear to the court that there was no appeal presently before him as it relates to Mr. Stubbs’s bankruptcy matter.

The Free National Movement has insisted that the Holy Cross-seat became vacant the moment Supreme Court Justice Jeannie Thompson declared the MP bankrupt in March.

When contacted on Sunday, the FNM’s candidate for Holy Cross Carl Bethel told the Bahama Journal that he wanted to steer clear of making too many public comments at this time on the matter which is still before the courts.

But he reiterated the position of his party as it relates to the latest debacle involving Mr. Stubbs.

“The government really has to decide whether they are going to honour and uphold the constitution or whether they’re going to play politics with it,” said Mr. Bethel, who is also the party’s chairman.

“They know that Sidney Stubbs has no appeal to the Privy Council.  His seat is vacant under the constitution and it is really an abuse of the constitution…the fact of the matter is if there is an appeal, the other side ought to have received concrete evidence of such a thing.”

Holy Cross Constituents in Support of Their Member of Parliament (MP), Sidney Stubbs Flirts with Contempt of Court in Mr Stubbs' Bankruptcy Case

The Bahamas Chief Justice, Sir Burton Hall dismissed Member of Parliament Sidney Stubbs' application to have his bankruptcy order overturned and indicated that the Supreme Court was not hearing an appeal in this matter

Holy Cross Voters Warned

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

24th November 2004

Constituents of Holy Cross who filed a summons in the Supreme Court in support of their Member of Parliament Sidney Stubbs could be in contempt of court, Chief Justice Sir Burton Hall determined on Tuesday.

The summons was actually filed by three constituents seeking to intervene in the proceedings, who also presented what purports to be a petition signed by 180 voters.

The current register has 3,912 registered voters in Holy Cross.

Sir Burton said in each case, the constituent describes himself as a “registered voter in the Holy Cross constituency” and “professes his satisfaction with the judgment debtor (Mr. Stubbs) as his representative.”

He said the application from Mr. Stubbs to have his bankruptcy order set aside or annulled arises out of a private matter and has nothing to do with the constituents.

“The filing of the summons on 17 November and the supporting affidavits raise serious questions as to whether it is an attempt to interfere with the due administration of justice by intimidating the court or the other party to the litigation by the demonstration of the popular support the judgment debtor has in his capacity as a Member of Parliament, irrespective of the merits of his case,” Sir Burton said.

He added, “I trust that parties to actions, and their counsel, would consider carefully the correctitude of documents which they think to file in court.  In this case, I choose not to pursue further the question of contempt and take the course of striking out the summons and affidavits as irrelevant to any issue now before the court and an abuse of its process.”

Mr. Stubbs has insisted throughout the legal fight to have the bankruptcy order against him set aside that he continues to have the full support of his constituents.

He has said that he continues to work in Holy Cross as its MP, although the outstanding case is preventing him from taking his seat in the House of Assembly.

On Tuesday, Sir Burton dismissed Mr. Stubbs’s application to have his bankruptcy order overturned and indicated that the Supreme Court was not hearing an appeal in this matter.

Sir Burton, however, said that if Mr. Stubbs’s counsel can say that he does not have an appeal active before the Privy Council, the Supreme Court would be in a position to consider an application for annulment.

An annulment of the order would acknowledge that Mr. Stubbs has paid his debt and is no longer a bankrupt.

But he can only hold onto his seat if he has a pending appeal.

Attorney Wayne Munroe, who represents the MP’s former creditor, Gina Gonzalez, has insisted that Mr. Stubbs does not have any active appeal.

Suisse Security Bank & Trust Ltd (SSBT) Loses its License Revocation Appeal

High Court Explains Why It Dismissed Suisse Security Bank Appeal

 

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

15th November 2004

The Governor of the Central Bank acted in conformity with the law when he revoked the license of Suisse Security Bank & Trust Ltd. (SSBT) more than three years ago, the Court of Appeal says in its newly released written response to SSBT’s appeal.

The high court on June 29, 2004 reaffirmed the 2003 judgment of Supreme Court Justice Austin Davis who ruled that SSBT failed to prove any grounds of its appeal.

Controversial Iranian businessman Mohammed Harajchi, who is still fighting to get his license back, owns the bank.

The Governor revoked the bank’s license on April 2, 2001 after determining that SSBT was carrying on its business in a manner detrimental to the public interest and the interest of its depositors or other creditors.

In the written response, Justice Milton L. Ganpatsingh said despite the submission of SSBT, the Governor could not have been acting in bad faith when he revoked the license.

The main reasons stated for the revocation included the failure of SSBT to report that US $1.6 million of its assets had been frozen in a trust account pending the outcome of litigation in the United States; and that US $3 million of SSBT’s assets had been attached in an account at a brokerage firm in New York in an action to which the company was a third party defendant.

These sums together made up 74 percent of the bank’s capital base.

The reasons also included a failure to provide the Central Bank with evidence of collateral to its satisfaction and evidence that the risk presented by the potential loss of US $3 million was covered by insurance.

The Central Bank has also reported that Mr. Harajchi’s bank continuously failed to provide it with a financial statement.

The first ground of appeal brought by attorneys for SSBT was whether the governor’s power to suspend and revoke the license of SSBT was temporarily suspended by an interlocutory injunction granted by Supreme Court Justice Hartman Longley on March 2, 2001.

But the Court of Appeal said this ground for appeal failed because there were more serious issues outside the limited terms or scope of the injunction and the Central Bank still possessed its general regulator powers and was free to act on them.

The second ground of appeal was that Justice Davis erred in holding that the governor’s power to suspend and revoke SSBT’s license was exercised in accordance with the Bank and Trust Companies Act 2000.

SSBT argues that under law, it should have received notice about the revocation and should have been afforded the opportunity to state its objection in writing.  But the court said this was not necessary, as pointed out by the Central Bank, because of certain practical reasons, including preventing loss to depositors and a run on the bank.

SSBT also maintained that the Central Bank Governor failed to give any or adequate reasons as required under law for revoking the license.

But the Court of Appeal, in support of Justice Davis’s view, disagreed.

It pointed out that SSBT had been made aware of all the concerns of the Central Bank and was not only “adversarial, but disingenuous in its response, so much so that it had initiated judicial review proceedings.”

“We do not agree that it was essential for the governor to set out a chronology of events touching and concerning the issues in order to establish that the regulatory demands had not been complied with,” the response from the high court said.

SSBT’s attorneys also submitted that there was no rational basis for the governor’s decision and that he failed to take into account certain important considerations before making his decision.

But the Court of Appeal held that the failure of SSBT to comply with certain regulatory requirements and the failure of the bank to inform the Central Bank of the US litigation involving US $3 million of the bank’s assets were “relevant considerations” in the governor’s determination.

“Both of those failures were as much a fact as the state of one’s digestion and demonstrated conduct which fell below the statutory requirements,” the judgment said.

Another ground of appeal was that Justice Davis erred in law in holding that the Governor did not act unreasonably or abused his power or acted in bad faith.

But the Court of Appeal justices said they can only judge the governor’s conduct in light of the prevailing circumstances.

“In the first place, it was entirely a matter within the Governor’s discretion to decide on reasonable grounds firstly, what would be required to protect the capital base of SSBT in terms of collateral to meet regulatory requirements;

“And secondly, what arrangement it would be necessary to put in place for Central Bank to obtain reliable and full information, which SSBT had failed to provide so far, concerning the US litigations,” the judgment said.

The final ground of the SSBT appeal was that the Supreme Court Justice erred in holding that the notice issued was not unlawful in that an officer of the Central Bank issued it.

But the judgment of the Court of Appeal said, “We do not understand the Governor to have delegated his power to suspend and revoke in the circumstances of this case by virtue of the fact that the notices were attached to a letter signed by an officer of Central Bank.”

The Bahamas is The Only Country in The Region that is Witnessing A Downward Trend in New HIV Cases

Anti-AIDS Education Programme Yields Positive Results Throughout The Bahamas

New HIV Cases Decline 

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

15th November-2004

The number of new HIV cases reported in 2003 declined for the third consecutive year, but health officials say there are still serious concerns regarding the spread of the deadly virus in the country.

Last year, 289 cases were reported.  This compares to 332 in 2002; 385 in 2001 and 404 in 2000, according to newly released numbers from the Infectious Disease Division of the Princess Margaret Hospital and the Department of Public Health.

The most recent figure is also the lowest number of cases reported in a given year since officials reported 710 cases in the period 1986-1988.

Director of the HIV/AIDS centre Nurse Rosa Mae Bain reported that The Bahamas is the only country in the region that is witnessing a downward trend in new HIV cases.

She believes this positive trend has resulted from a consistent anti-AIDS education programme throughout The Bahamas.

“We’re marketing the condom use because it’s crucial that everybody who has sex with somebody knows the status of their partner,” Nurse Bain said.  “If they don’t know, then they need to protect themselves with the condom.”

Her department is also getting set to launch a marketing campaign promoting the use of the female condom.

“They’ve been available for a while, but we’ve not really pushed it,” she said.

Officials of the National AIDS programme have also expanded their outreach in schools, working with grade six students encouraging them to delay the initiation of sexual activity.

“What we are also doing is training them if they are sexually active to protect themselves, that is crucial.  They need to know about the availability of condoms, how to store them; how to use them; how to put them on and how to take them off,” Nurse Bain said.

The new numbers also show that the sexually active age group 15 – 44, continues to be the main group of people infected with the virus that causes AIDS.

AIDS is the leading cause of death in the age group 15 – 29.

The National AIDS programme has monitored the epidemic since 1983.  As of December 31, 2003, there was a cumulative total of 9,725 total HIV infections, 4,758 cases of AIDS and 4,697 persons who are non-AIDS HIV positive.

Of the total 4,758 cases of AIDS, 3,309 have died.  Of the total 9,725 infections, 6,920 occur in young adults between the age group of 15 – 44.  The ratio of males to females infected with HIV is now 1:1.

Nurse Bain said there is still a serious concern as it relates to older men passing the virus on to young girls.

It’s a dilemma authorities continue to tackle.  They say because of the high numbers of single mother homes, many girls are often easily enticed by material possessions and are therefore more inclined to have sex with men who can provide these things.

“We’re very well aware that approximately 70 percent of our babies are born to single parents,” Nurse Bain said.  “Because of that, within the home-setting, there is not the male figure…we want to send a message out there, ‘Older men, please leave our young girls alone.’”

There is another practice of grave concern.

Nurse Bain said there are many girls who are engaged in rectal sex as protection from getting pregnant.  They also see it as a way of having sex and remaining virgins.  But she said there is serious danger in this practice.

“Once the lining of the rectum is torn and somebody has HIV, [men] can pass that on very, very quickly to our young girls,” she said.  “This is a concern for both male and females.  Next to blood transfusion, rectal sex is the easiest way to get HIV infected.”

The first clinical case of AIDS was reported in1983 and confirmed on post mortem in 1985.  The first confirmed case of AIDS was reported in The Bahamas in August 1985 when antibody elisa testing became available, according to the Bahamas National HIV/AIDS Programme.

The Bahamas has the highest annual incidence rate of AIDS in the English speaking Caribbean, and is among the three nations with the highest incidence rates in the world.