BTC political row worsens
By CANDIA DAMES
The Nassau Guardian News Editor
candia@nasguard.com
Parties hit out over $210M deal
The sparring over the government’s decision to sell 51 percent of the Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC) has intensified, with the two major political parties arguing over whether the majority of Bahamians support the deal.
The Progressive Liberal Party (PLP) said yesterday that its parliamentary caucus has embarked on a thorough and comprehensive review of the BTC and CWC transaction, and will be releasing regular positions on each component of the transaction.
“The PLP has clear and unequivocal objections to the commercial terms of this transaction, and more specifically the purchase price and consideration the government, and the Bahamian people, will realize from the sale of this prized national asset,” the party said in a statement.
The government has agreed to sell 51 percent of the shares of BTC to CWC for $210 million plus taxes.
“However, when one looks more closely at the terms of the transaction as set out in the share purchase agreement, it is clear The Bahamas government is receiving far less than $210 million, and it is equally clear that whatever the government eventually receives is far less than the value of 51 percent of BTC,” the PLP claimed.
“The Bahamas government is obligated to leave at least $15 million in cash in the company. Furthermore, The Bahamas government is obligated to fund pension liabilities in the amount of $39 million. Taking into account these obligations of the Bahamian government, the most the government will receive is $156 million for 51 percent of BTC.
“The PLP objects to this and cries shame on the government for accepting an offer that is clearly below market value for BTC. In fact, the Financial Times pointed out that the $210 million purchase price was below the industry average; certainly $156 million is significantly below market price for 51 percent of BTC.”
Meanwhile, an argument has intensified over the level of support the government has on the privatization issue.
An earlier statement released by Elizabeth MP Ryan Pinder on behalf of the PLP said the party takes exception to the Free National Movement’s practice of “misleading the Bahamian public on the support for the BTC sale to Cable and Wireless.”
“The PLP proposes that the majority of Bahamians are against this specific sale of BTC. The PLP has committed itself to a series of statements and position pieces that will clearly note our objections to the BTC sale, focused on different objections,” Pinder said.
“The PLP is also committed in these releases to educating Bahamians as to the shortfalls of this proposed sale of BTC. The PLP demands that the FNM be honest and straightforward with the Bahamian people on this give away of the people's asset, BTC.”
But the FNM shot back in a statement last night, saying as support for the opposition’s position on the partnership to create a new BTC with Cable and Wireless continues to erode, it has begun to panic and continues to ignore the voices of the majority of Bahamians.
“The opposition says that it ‘proposes that the majority of Bahamians are against this specific sale of BTC’. Rather than proposing, the FNM has taken note of two surveys over the past two weeks which have shown the surge of support for the creation of a new BTC. One survey was conducted by a private group (Consumer Voices Bahamas) the other by one of the dailies,” the FNM said.
The FNM noted that in The Nassau Guardian’s online survey 4,563 people responded. The question was whether respondents supported the PLP’s decision to reject the deal.
“It appears that the voices of these thousands of Bahamians and many others are of no consequence to the PLP, which now seeks to substitute its own faltering position for that of the majority of Bahamians,” the FNM said.
But Pinder said in his statement that a previous FNM release and associated polls “misrepresented” the views of Bahamians.
“The unscientific polls focused on whether privatization was a good idea, and not [the] real issue that concerns the majority of Bahamians, which is whether this sale to Cable and Wireless under the proposed terms tabled in the House of Assembly last week is a good deal,” he said.
The FNM insisted however that support for the deal continues to grow among Bahamians.
“We believe that after the House of Assembly debate on BTC’s future, that many more Bahamians will support the new partnership, as misinformation and incorrect information are countered with the facts, which will shed more light on the fiction promoted by certain narrow interests,” the FNM said.
2/16/2011
thenassauguardian
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Wednesday, February 16, 2011
Tuesday, February 15, 2011
BTC unions lose court battle to block the sale of 51 % stake in Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC)... [Ordered to pay costs]
BTC unions lose court battle
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Supreme Court Justice Neville Adderley yesterday threw out a court action filed by Bahamas Telecommunications Company unions seeking to block the sale of a 51 percent stake in BTC to Cable and Wireless Communications (CWC).
The Bahamas Communications and Public Officers Union (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) were seeking an injunction to stop the government from selling BTC.
Attorney Maurice Glinton, who represented the unions, confirmed to The Nassau Guardian that they plan to appeal the decision. He could not say at the time when the necessary documents would be filed.
In his ruling, Adderley said the BCPOU and BCPMU and their trustees lacked the legal capacity to institute and maintain the action in their own names.
“Hence the action is a nullity and so the granting of an injunction pending its hearing does not arise,” Adderley said.
“Alternatively, the evidence has not disclosed that any of their private legal rights are being infringed or threatened or need to be enforced or declared, as they have not established an interest recognized by law as being direct and substantial enough in the subject matter of the action to give them locus standi to commence the action to claim the remedies set forth in the writ.
“For the foregoing reasons, I strike out the writ and dismiss the action.”
Adderley also ordered that the unions pay costs in the matter.
In their writ, the unions contended that the government has no authority to sell BTC because an act of Parliament made the Bahamas Telecommunications Corporation (BaTelCo) a self-owning and self-sustaining entity.
Their claim is that consequently the divested assets are now held by BTC in trust for BaTelCo.
Adderley said there is no express power in the Industrial Relations Act that gives unions the capacity or power to sue for declarations outside their statutory objects.
Adderley said even if they had the capacity to sue for the matters in question, he considered whether they had a legal interest to sue for the relief claimed.
Last week, the government signed a shareholder’s agreement and a share purchase agreement with CWC, and Prime Minister Hubert Ingraham tabled the memorandum of understanding between the two entities in the House of Assembly along with related documents.
Yesterday, BCPOU President Bernard Evans said the ruling has in no way halted the union’s efforts to stop the sale of BTC.
“We never really rested all of our efforts on this court case, even though we knew we had good grounds and it is a landmark case. But we never wanted to leave any stone unturned. We will continue to do our stuff because this is not over by a long shot,” Evans said.
“We are going to fight this on all fronts. Whatever it takes, we are going to take our time and get to it.”
Evans shot down claims by the Free National Movement that the majority of Bahamians support the sale of BTC to Cable and Wireless.
“I saw in the paper where the FNM government believe that they have the majority of the people, they keep putting us in the minority. Well the day of reckoning is coming when we will know who has the majority,” Evans said.
The deal between the government and CWC calls for the shares to be sold for $210 million, as well as a stamp duty of $7 million. Eventually, 25 percent of the shares in the company will be offered to Bahamians, the government has said.
2/15/2011
thenassauguardian
By KEVA LIGHTBOURNE
Guardian Senior Reporter
kdl@nasguard.com
Supreme Court Justice Neville Adderley yesterday threw out a court action filed by Bahamas Telecommunications Company unions seeking to block the sale of a 51 percent stake in BTC to Cable and Wireless Communications (CWC).
The Bahamas Communications and Public Officers Union (BCPOU) and the Bahamas Communications and Public Managers Union (BCPMU) were seeking an injunction to stop the government from selling BTC.
Attorney Maurice Glinton, who represented the unions, confirmed to The Nassau Guardian that they plan to appeal the decision. He could not say at the time when the necessary documents would be filed.
In his ruling, Adderley said the BCPOU and BCPMU and their trustees lacked the legal capacity to institute and maintain the action in their own names.
“Hence the action is a nullity and so the granting of an injunction pending its hearing does not arise,” Adderley said.
“Alternatively, the evidence has not disclosed that any of their private legal rights are being infringed or threatened or need to be enforced or declared, as they have not established an interest recognized by law as being direct and substantial enough in the subject matter of the action to give them locus standi to commence the action to claim the remedies set forth in the writ.
“For the foregoing reasons, I strike out the writ and dismiss the action.”
Adderley also ordered that the unions pay costs in the matter.
In their writ, the unions contended that the government has no authority to sell BTC because an act of Parliament made the Bahamas Telecommunications Corporation (BaTelCo) a self-owning and self-sustaining entity.
Their claim is that consequently the divested assets are now held by BTC in trust for BaTelCo.
Adderley said there is no express power in the Industrial Relations Act that gives unions the capacity or power to sue for declarations outside their statutory objects.
Adderley said even if they had the capacity to sue for the matters in question, he considered whether they had a legal interest to sue for the relief claimed.
Last week, the government signed a shareholder’s agreement and a share purchase agreement with CWC, and Prime Minister Hubert Ingraham tabled the memorandum of understanding between the two entities in the House of Assembly along with related documents.
Yesterday, BCPOU President Bernard Evans said the ruling has in no way halted the union’s efforts to stop the sale of BTC.
“We never really rested all of our efforts on this court case, even though we knew we had good grounds and it is a landmark case. But we never wanted to leave any stone unturned. We will continue to do our stuff because this is not over by a long shot,” Evans said.
“We are going to fight this on all fronts. Whatever it takes, we are going to take our time and get to it.”
Evans shot down claims by the Free National Movement that the majority of Bahamians support the sale of BTC to Cable and Wireless.
“I saw in the paper where the FNM government believe that they have the majority of the people, they keep putting us in the minority. Well the day of reckoning is coming when we will know who has the majority,” Evans said.
The deal between the government and CWC calls for the shares to be sold for $210 million, as well as a stamp duty of $7 million. Eventually, 25 percent of the shares in the company will be offered to Bahamians, the government has said.
2/15/2011
thenassauguardian
Monday, February 14, 2011
The majority of Bahamians approve the sale of Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (C&W)
Competition toughened Cable & Wireless
tribune242 editorial
YESTERDAY'S Gleaner reported that Cable & Wireless Jamaica, trading as LIME Jamaica, "continued its financial haemorrhaging in the December quarter, posting a $1.3 billion loss for the three-month period, nearly triple the $351.4 million of a year earlier."
Despite this its managers continue to look on the bright side, insisting that they are on the verge of turning the company around.
According to The Gleaner, Jamaica LIME has been in "retreat for the past decade since it lost its monopoly in Jamaica's telecommunications market."
"That's what happens to monopolies," said a Bahamian who is close to the situation. LIME Jamaica was doing the same foolishness as BTC because it felt secure in its monopoly, he said, then Digicel, an Irish company with dirt cheap rates, came in and ran it out of business.
It was this lesson from fierce competition that forced Cable & Wireless into the efficient company that it is today with Digicel waiting in the background to meet it head on in the Bahamas when the floodgates are open to competition.
One can now understand why the Bahamas government has offered and C&W - having learned from its Jamaican experience -- has accepted the three-year protection cover from monopolies for BTC's cellular service.
If it were not for this three-year period to build BTC up to meet competitors, the Bahamas' Telecommunications Company would crumble under the strain. C&W, on the other hand, although stumbling in Jamaica is prospering in Barbados and Trinidad.
But there is no room for hubris. There is much to be done to get BTC in a position to meet the competition, and for three years the BTC staff, who are interested in their company, will have an opportunity to prove that they are not among those who deserve to be made redundant.
In an interview with the Jamaican Observer last year, Digicel CEO Colm Delves, said that Digicel looked at the Bahamas, but was not interested in just having a stake in BTC, and so it decided "to pass on that."
"What was being offered there was a stake in the existing operator," said Mr Delves. "We think that when liberalization takes place there, then that will be the appropriate time to enter that market."
So in three years time Digicel and others might be the wolves at the door. Cable & Wireless will have to have BTC ready to meet the challenge and regardless of what Mr Evans, Mr Carroll and their unionists claim, they are babes in the woods, ignorant of the hungry sharks waiting in the world of competition to devour them and BTC.
Judging from the various polls, street talk and radio talk shows, the majority of Bahamians approve the sale of BTC to C&W.
They want better service, more choice, cheaper cell phone rates, access to mobile TV and the ability to phone the Family Islands as a part of the Bahamas, not as foreign islands with overseas charges.
Bahamians are weary of the oft-repeated fiction that they own BTC. Ownership implies having some stake in the company. Although as tax payers they underwrite staff salaries, they cannot even demand good service.
With the sale of BTC Bahamians will eventually be able to buy shares in the company and have share certificates to prove that finally they do own a piece of BTC.
Although Bernard Evans, BCPOU president, claims that unionists are against the sale of BTC, there are unions that have refused to join in his protest.
Many are particularly upset after his reckless threats promising unrest similar to the violence in the past few weeks in Egypt.
Mr Evans has asked Bahamians to have patience with BTC because the public's services "will be affected somewhat" because of the union protest.
Mr Evans seems to forget that Bahamians have exercised years of patience, grudgingly tolerating their high prices and indifferent service.
Now that Bahamians see a way out and a deliverer on the horizon, they are ready to jump ship.
Patience is at an end.
February 14, 2011
tribune242 editorial
tribune242 editorial
YESTERDAY'S Gleaner reported that Cable & Wireless Jamaica, trading as LIME Jamaica, "continued its financial haemorrhaging in the December quarter, posting a $1.3 billion loss for the three-month period, nearly triple the $351.4 million of a year earlier."
Despite this its managers continue to look on the bright side, insisting that they are on the verge of turning the company around.
According to The Gleaner, Jamaica LIME has been in "retreat for the past decade since it lost its monopoly in Jamaica's telecommunications market."
"That's what happens to monopolies," said a Bahamian who is close to the situation. LIME Jamaica was doing the same foolishness as BTC because it felt secure in its monopoly, he said, then Digicel, an Irish company with dirt cheap rates, came in and ran it out of business.
It was this lesson from fierce competition that forced Cable & Wireless into the efficient company that it is today with Digicel waiting in the background to meet it head on in the Bahamas when the floodgates are open to competition.
One can now understand why the Bahamas government has offered and C&W - having learned from its Jamaican experience -- has accepted the three-year protection cover from monopolies for BTC's cellular service.
If it were not for this three-year period to build BTC up to meet competitors, the Bahamas' Telecommunications Company would crumble under the strain. C&W, on the other hand, although stumbling in Jamaica is prospering in Barbados and Trinidad.
But there is no room for hubris. There is much to be done to get BTC in a position to meet the competition, and for three years the BTC staff, who are interested in their company, will have an opportunity to prove that they are not among those who deserve to be made redundant.
In an interview with the Jamaican Observer last year, Digicel CEO Colm Delves, said that Digicel looked at the Bahamas, but was not interested in just having a stake in BTC, and so it decided "to pass on that."
"What was being offered there was a stake in the existing operator," said Mr Delves. "We think that when liberalization takes place there, then that will be the appropriate time to enter that market."
So in three years time Digicel and others might be the wolves at the door. Cable & Wireless will have to have BTC ready to meet the challenge and regardless of what Mr Evans, Mr Carroll and their unionists claim, they are babes in the woods, ignorant of the hungry sharks waiting in the world of competition to devour them and BTC.
Judging from the various polls, street talk and radio talk shows, the majority of Bahamians approve the sale of BTC to C&W.
They want better service, more choice, cheaper cell phone rates, access to mobile TV and the ability to phone the Family Islands as a part of the Bahamas, not as foreign islands with overseas charges.
Bahamians are weary of the oft-repeated fiction that they own BTC. Ownership implies having some stake in the company. Although as tax payers they underwrite staff salaries, they cannot even demand good service.
With the sale of BTC Bahamians will eventually be able to buy shares in the company and have share certificates to prove that finally they do own a piece of BTC.
Although Bernard Evans, BCPOU president, claims that unionists are against the sale of BTC, there are unions that have refused to join in his protest.
Many are particularly upset after his reckless threats promising unrest similar to the violence in the past few weeks in Egypt.
Mr Evans has asked Bahamians to have patience with BTC because the public's services "will be affected somewhat" because of the union protest.
Mr Evans seems to forget that Bahamians have exercised years of patience, grudgingly tolerating their high prices and indifferent service.
Now that Bahamians see a way out and a deliverer on the horizon, they are ready to jump ship.
Patience is at an end.
February 14, 2011
tribune242 editorial
Sunday, February 13, 2011
We remind the government of its specific pledge made in 2007, as it relates to establishing a Freedom of Information Act
Freedom and access to information
thenassauguardian editorial
Within weeks of coming to office in 2007, a new FNM Administration led by Hubert Ingraham and guided by a Trust Agenda committed itself to greater democratic governance.
The tabling of the Bahamas Telecommunications Company sales agreements between the government and Cable and Wireless Communications was an example of this commitment, and was in keeping with the prompt freeing of the broadcast media from state control during the FNM’s earlier term in office.
We trust that the Free National Movement government means what it says. Accordingly, we remind the government of its specific pledge made in 2007, as it relates to establishing a Freedom of Information Act:
“Accountability and transparency in government are fundamental to our code of beliefs, a code that includes the right of the people to access information regarding the processes of governing. In support of such openness, legislation will be placed before you for the enactment of a Freedom of Information Act.”
This top billing and decisive language suggested immediate action.
So, what is the state of this pledge? Enacting such legislation near the end of the current government’s term would not seem to be consistent with the FNM’s trust agenda.
Many other countries in the region are either in the process of drafting or have already implemented Freedom of Information laws. Around the world, more than 60 countries have enacted FOI acts.
Freedom of information has long been recognized as a foundational human right ever since the United Nations General Assembly declared in 1946 that, “Freedom of Information is a fundamental human right and a touchstone of all freedoms to which the United Nations is consecrated.” Since then, the Organization of American States and the Commonwealth — The Bahamas being a member of both — have also endorsed minimum standards on the right of information.
A FOI law has the potential to promote greater transparency and accountability and also facilitates greater public participation in the government’s decision-making process. Empowering citizens with the legal right to access information of their government’s activities can strengthen democracy by making the government directly accountable to its citizens on a day-to-day basis rather than just at election time.
Legislation to provide more freedom or access to information is not an end in itself.
An outdated public service culture run by civil servants who would often prefer root canal surgery rather than press scrutiny will not quickly become more transparent because of the passage of a bill.
Moreover, a media culture that is often sloppy and lazy in its coverage of government and political affairs will also not suddenly become more enterprising. Still, such legislation is a means to various ends. It is a part of a framework of legislative tools that can help to promote a more accountable and transparent public service culture.
The debate on, enactment of and training in the details of such legislation may help spur politicians, civil servants and journalists to provide citizens with the freedom of information needed to make freer and more informed decisions.
Outlawing discrimination does not end prejudice. But it puts that prejudice on notice that discrimination is against the law. Legislation to ensure greater public access to information will not in itself ensure a more open public service culture. But it puts that culture on notice that such openness is an essential component in good and effective governance.
We trust that the FNM will live up to its word and will be supported by the Opposition, who also committed itself to similar legislation.
As of now we are agnostic regarding the details of such legislation. But we have faith that such landmark legislation is not only necessary, but long overdue.
2/11/2011
thenassauguardian editorial
thenassauguardian editorial
Within weeks of coming to office in 2007, a new FNM Administration led by Hubert Ingraham and guided by a Trust Agenda committed itself to greater democratic governance.
The tabling of the Bahamas Telecommunications Company sales agreements between the government and Cable and Wireless Communications was an example of this commitment, and was in keeping with the prompt freeing of the broadcast media from state control during the FNM’s earlier term in office.
We trust that the Free National Movement government means what it says. Accordingly, we remind the government of its specific pledge made in 2007, as it relates to establishing a Freedom of Information Act:
“Accountability and transparency in government are fundamental to our code of beliefs, a code that includes the right of the people to access information regarding the processes of governing. In support of such openness, legislation will be placed before you for the enactment of a Freedom of Information Act.”
This top billing and decisive language suggested immediate action.
So, what is the state of this pledge? Enacting such legislation near the end of the current government’s term would not seem to be consistent with the FNM’s trust agenda.
Many other countries in the region are either in the process of drafting or have already implemented Freedom of Information laws. Around the world, more than 60 countries have enacted FOI acts.
Freedom of information has long been recognized as a foundational human right ever since the United Nations General Assembly declared in 1946 that, “Freedom of Information is a fundamental human right and a touchstone of all freedoms to which the United Nations is consecrated.” Since then, the Organization of American States and the Commonwealth — The Bahamas being a member of both — have also endorsed minimum standards on the right of information.
A FOI law has the potential to promote greater transparency and accountability and also facilitates greater public participation in the government’s decision-making process. Empowering citizens with the legal right to access information of their government’s activities can strengthen democracy by making the government directly accountable to its citizens on a day-to-day basis rather than just at election time.
Legislation to provide more freedom or access to information is not an end in itself.
An outdated public service culture run by civil servants who would often prefer root canal surgery rather than press scrutiny will not quickly become more transparent because of the passage of a bill.
Moreover, a media culture that is often sloppy and lazy in its coverage of government and political affairs will also not suddenly become more enterprising. Still, such legislation is a means to various ends. It is a part of a framework of legislative tools that can help to promote a more accountable and transparent public service culture.
The debate on, enactment of and training in the details of such legislation may help spur politicians, civil servants and journalists to provide citizens with the freedom of information needed to make freer and more informed decisions.
Outlawing discrimination does not end prejudice. But it puts that prejudice on notice that discrimination is against the law. Legislation to ensure greater public access to information will not in itself ensure a more open public service culture. But it puts that culture on notice that such openness is an essential component in good and effective governance.
We trust that the FNM will live up to its word and will be supported by the Opposition, who also committed itself to similar legislation.
As of now we are agnostic regarding the details of such legislation. But we have faith that such landmark legislation is not only necessary, but long overdue.
2/11/2011
thenassauguardian editorial
Saturday, February 12, 2011
We are absolutely convinced that the Bahamian people [private and public] should have been allowed to retain majority control of BTC
Those In Opposition to a Deal
The Bahama Journal Editorial
There are times in life when principle kicks in and when you do what you must do based on what conscience dictates.
Today we reiterate our opposition to what seems a deal well on its way toward being signed, sealed and delivered.
If things go as the current administration has planned, Cable and Wireless will – in short order – take possession of the majority stake in the Bahamas Telecommunications Corporation.
Clearly, then, this will not be the end of the matter concerning this corporation, Cable and Wireless and all of what went into making this deal a signed reality.
As the public has been told, there will be continuing opposition to the deal by Her Majesty’s Loyal Opposition and from any number of unions.
Opposition Leader Perry Christie has already indicated that [in the event that his party prevails in the next general elections] he would renegotiate the terms of the BTC sale.
This is his and their right.
In addition, some of the unions are adamant that there should be no deal; with one union leader grandly proclaiming that he and his followers are preparing to make of Rawson Square and its environs some sort of Little Egypt.
While hyperbole might have its place in social life; we counsel caution when it comes to making pronouncements that might be construed as being of an incendiary nature.
There is today every likelihood that, this issue will continue to be debated, mulled and chewed over as part of whatever passes for debate preceding that date when the Bahamian people will vote in free and fair elections.
In and of itself, this is all part of the way we do things in a democratic, law-abiding nation; A deal is a deal and as some of us know, a deal becomes a very real deal once it is signed, sealed and delivered.
The details of the memorandum of understanding (MOU) between the government and Cable & Wireless Communications (CWC) for the sale and privatisation of the Bahamas Telecommunications Company (BTC) has [ finally] been revealed by Prime Minister Hubert Ingraham.
As we also know, the government is on tap to sell 51 per cent of BTC to CWC for $210 million. Barring some perfectly unforeseen occurrence, this deal will be consummated.
Whether it should be so completed is another question altogether, or as it might be put colloquially, this aspect of the matter is surely a horse of a different colour.
As regards the deal that will be consummated, there is now agreement as regards how C&W will work with the government and the management of BTC to finalize a business plan for BTC; this as movement is made towards addressing its plan for the modernization of telecommunications throughout The Bahamas.
This deal should have been dealt with differently. In addition, we are absolutely convinced that the Bahamian people [private and public] should have been allowed to retain majority control of BTC.
We know that we are not alone in this view.
As we counseled on another occasion, "… all Bahamians who are patriots should rise – as if they were one man- in opposition to any deal that would deny the Bahamian people majority control of entities such as BTC…"
Indeed, like so very many other Bahamians who disagree with the current administration’s on that matter which involves giving Cable and Wireless a 51% per cent stake in BTC, we do so based on our studied conclusion that this deal is not in the best interests of either BTC or the Bahamian people.
We rush to assure the public that our difference with the current administration has next to nothing to do with any position that might seem to be –at least on first blush- barking up the same tree.
That other Bahamians are so minded only reminds us that, there are times in life when an administration can be out of touch with a socially [and perhaps, politically significant bloc of opinion.
While some who oppose the deal may be doing so because they fear some of its implications and ramifications, moving forward, we are where we are based on principle.
In the ultimate analysis, then, this is as good as any a basis on which we wish to stand firm.
Out of firmness comes character.
February 10, 2011
The Bahama Journal Editorial
The Bahama Journal Editorial
There are times in life when principle kicks in and when you do what you must do based on what conscience dictates.
Today we reiterate our opposition to what seems a deal well on its way toward being signed, sealed and delivered.
If things go as the current administration has planned, Cable and Wireless will – in short order – take possession of the majority stake in the Bahamas Telecommunications Corporation.
Clearly, then, this will not be the end of the matter concerning this corporation, Cable and Wireless and all of what went into making this deal a signed reality.
As the public has been told, there will be continuing opposition to the deal by Her Majesty’s Loyal Opposition and from any number of unions.
Opposition Leader Perry Christie has already indicated that [in the event that his party prevails in the next general elections] he would renegotiate the terms of the BTC sale.
This is his and their right.
In addition, some of the unions are adamant that there should be no deal; with one union leader grandly proclaiming that he and his followers are preparing to make of Rawson Square and its environs some sort of Little Egypt.
While hyperbole might have its place in social life; we counsel caution when it comes to making pronouncements that might be construed as being of an incendiary nature.
There is today every likelihood that, this issue will continue to be debated, mulled and chewed over as part of whatever passes for debate preceding that date when the Bahamian people will vote in free and fair elections.
In and of itself, this is all part of the way we do things in a democratic, law-abiding nation; A deal is a deal and as some of us know, a deal becomes a very real deal once it is signed, sealed and delivered.
The details of the memorandum of understanding (MOU) between the government and Cable & Wireless Communications (CWC) for the sale and privatisation of the Bahamas Telecommunications Company (BTC) has [ finally] been revealed by Prime Minister Hubert Ingraham.
As we also know, the government is on tap to sell 51 per cent of BTC to CWC for $210 million. Barring some perfectly unforeseen occurrence, this deal will be consummated.
Whether it should be so completed is another question altogether, or as it might be put colloquially, this aspect of the matter is surely a horse of a different colour.
As regards the deal that will be consummated, there is now agreement as regards how C&W will work with the government and the management of BTC to finalize a business plan for BTC; this as movement is made towards addressing its plan for the modernization of telecommunications throughout The Bahamas.
This deal should have been dealt with differently. In addition, we are absolutely convinced that the Bahamian people [private and public] should have been allowed to retain majority control of BTC.
We know that we are not alone in this view.
As we counseled on another occasion, "… all Bahamians who are patriots should rise – as if they were one man- in opposition to any deal that would deny the Bahamian people majority control of entities such as BTC…"
Indeed, like so very many other Bahamians who disagree with the current administration’s on that matter which involves giving Cable and Wireless a 51% per cent stake in BTC, we do so based on our studied conclusion that this deal is not in the best interests of either BTC or the Bahamian people.
We rush to assure the public that our difference with the current administration has next to nothing to do with any position that might seem to be –at least on first blush- barking up the same tree.
That other Bahamians are so minded only reminds us that, there are times in life when an administration can be out of touch with a socially [and perhaps, politically significant bloc of opinion.
While some who oppose the deal may be doing so because they fear some of its implications and ramifications, moving forward, we are where we are based on principle.
In the ultimate analysis, then, this is as good as any a basis on which we wish to stand firm.
Out of firmness comes character.
February 10, 2011
The Bahama Journal Editorial
Friday, February 11, 2011
What's the exact amount (net) that represents the proceeds of the sale of Bahamas Telecommunications Company (BTC)?
What are we getting and what were we paid for BTC?
thenassauguardian editorial
The deal is done. It is finished. The Bahamas Telecommunications Company or at least the majority of BTC, 51 percent, has been sold to Cable & Wireless Communications and The Bahamas will soon be a part of the LIME telecommunications network.
On the surface, it would appear that for dispensing with 51 percent of BTC, Bahamians could expect to receive, over time, the following features which presumably the existing Bahamian management and staff of BTC are unwilling or unable to deliver:
• expanded services for smart phones (Blackberry, iPhones) at “reasonable” prices and faster mobile services to deliver music and television to handsets;
• increase in the number of places Bahamians can go to receive phone services;
• purchase pre-connected phones at retail outlets;
• standard prices for daily cellular services and no more long distance charges for calls made locally;
• better roaming and faster broadband services;
• more connectivity for the Family Islands and more efficient services for small- and medium-sized businesses;
• easier to understand billing services and up to 36 percent reduction in costs per minute over the next three years; and
• spending on community projects including support for Junkanoo; a “center for excellence”; opportunities for Bahamians to work in the rest of the Caribbean (movement of labor has arrived); and increased services to our major economic sectors, tourism and banking.
In addition to the improved services on our existing network, CWC will reportedly pay to the government $210 million plus another $7 million in stamp duties for 51 percent of BTC.
Should we deduct from that figure the unknown amount of net cash value in excess of $15 million at the date of sale that CWC is allowed to take out of BTC?
Should we also deduct the $39 million that the government (Bahamian taxpayer) has agreed to place in the “Feeder Trust” which would presumably cover the shortfall in BTC’s existing pension plan?
It would be useful and enormously transparent if someone would let the public know the exact amount (net) that represents the proceeds of the sale of BTC.
And while you are at it, let us know how the Treasury will fare in future without the $96 million in dividends paid to it by BTC in 2009, if we are to accept a recent report published in the local press.
We would be among the first to agree that there is a need to improve the services performance of BTC but we find it difficult to accept that the above list of services cannot be provided by the Bahamian workforce.
We find it equally difficult to accept that the best way to improve services would be to sell the majority of shares to a regional carrier which, in addition to collecting two percent of total revenue for its intellectual property (despite being the majority owner) would most likely make all major decisions involving the local company in its far-away regional headquarters in the Caribbean. A regional carrier would most likely remit much-needed foreign exchange out of the country in the form of dividends and profits.
And above all, we most certainly hope that our Caribbean friends, who may hold equity (shares) in LIME are not indirectly holding shares in BTC before Bahamian residents are allowed to do so.
2/10/2011
thenassauguardian editorial
thenassauguardian editorial
The deal is done. It is finished. The Bahamas Telecommunications Company or at least the majority of BTC, 51 percent, has been sold to Cable & Wireless Communications and The Bahamas will soon be a part of the LIME telecommunications network.
On the surface, it would appear that for dispensing with 51 percent of BTC, Bahamians could expect to receive, over time, the following features which presumably the existing Bahamian management and staff of BTC are unwilling or unable to deliver:
• expanded services for smart phones (Blackberry, iPhones) at “reasonable” prices and faster mobile services to deliver music and television to handsets;
• increase in the number of places Bahamians can go to receive phone services;
• purchase pre-connected phones at retail outlets;
• standard prices for daily cellular services and no more long distance charges for calls made locally;
• better roaming and faster broadband services;
• more connectivity for the Family Islands and more efficient services for small- and medium-sized businesses;
• easier to understand billing services and up to 36 percent reduction in costs per minute over the next three years; and
• spending on community projects including support for Junkanoo; a “center for excellence”; opportunities for Bahamians to work in the rest of the Caribbean (movement of labor has arrived); and increased services to our major economic sectors, tourism and banking.
In addition to the improved services on our existing network, CWC will reportedly pay to the government $210 million plus another $7 million in stamp duties for 51 percent of BTC.
Should we deduct from that figure the unknown amount of net cash value in excess of $15 million at the date of sale that CWC is allowed to take out of BTC?
Should we also deduct the $39 million that the government (Bahamian taxpayer) has agreed to place in the “Feeder Trust” which would presumably cover the shortfall in BTC’s existing pension plan?
It would be useful and enormously transparent if someone would let the public know the exact amount (net) that represents the proceeds of the sale of BTC.
And while you are at it, let us know how the Treasury will fare in future without the $96 million in dividends paid to it by BTC in 2009, if we are to accept a recent report published in the local press.
We would be among the first to agree that there is a need to improve the services performance of BTC but we find it difficult to accept that the above list of services cannot be provided by the Bahamian workforce.
We find it equally difficult to accept that the best way to improve services would be to sell the majority of shares to a regional carrier which, in addition to collecting two percent of total revenue for its intellectual property (despite being the majority owner) would most likely make all major decisions involving the local company in its far-away regional headquarters in the Caribbean. A regional carrier would most likely remit much-needed foreign exchange out of the country in the form of dividends and profits.
And above all, we most certainly hope that our Caribbean friends, who may hold equity (shares) in LIME are not indirectly holding shares in BTC before Bahamian residents are allowed to do so.
2/10/2011
thenassauguardian editorial
Thursday, February 10, 2011
I'm delighted that Bahamas Telecommunications Company (BTC) will be out of the government's hands and looking forward to great things to come
I'm just delighted that BTC is sold
By Rick Lowe
If there is one policy I agree with the FNM on is their intention to divest the public corporations.
I am also glad that there does not appear to be any cronyism in their decision.
The comments like we're being re-colonised as a result of the big white bogeyman buying BTC or the government caused BTC to be like it is, or the union president being quoted as threatening to turn "The Bahamas into a small Egypt" and bear with us as we interrupt your phone service for example are simply out of step with the real world.
The racist comments aside, on the one hand the government is the problem with BTC, but they want the government to hold on to it. For what? So they can continue to interfere and hand string the corporation?
Now let's look at the third comment for a moment. Saying,'We'll turn country into small Egypt' is most inappropriate. The Bahamas is a parliamentary democracy and Bahamians do not wish to turn to a dictatorship for an example of how a country should be.
The fourth comment that Bahamians should bear with them as they disrupt the phone services that people rely on for emergencies or to make a living is nothing short of disrespectful to hard working, law abiding Bahamians throughout the country.
If I were able to bend the ear of those opposed to CWC/LIME buying a 51% stake in BTC, I would suggest that they re-group and start putting their resources and business plans together to enter the market as a cellular provider when the market is liberalised in three years.
Few of us want to resort to violence to achieve our ends in tis day and age, and besides didn't Sir Lynden figuratively lead us out of Egypt in 1967?
That's intended to be funny of course, but The Bahamas has come too far to be set back with that behaviour.
In the final, I'm delighted BTC will be out of governments hands and look forward to great things to come.
February 10, 2011
weblogbahamas
By Rick Lowe
If there is one policy I agree with the FNM on is their intention to divest the public corporations.
I am also glad that there does not appear to be any cronyism in their decision.
The comments like we're being re-colonised as a result of the big white bogeyman buying BTC or the government caused BTC to be like it is, or the union president being quoted as threatening to turn "The Bahamas into a small Egypt" and bear with us as we interrupt your phone service for example are simply out of step with the real world.
The racist comments aside, on the one hand the government is the problem with BTC, but they want the government to hold on to it. For what? So they can continue to interfere and hand string the corporation?
Now let's look at the third comment for a moment. Saying,'We'll turn country into small Egypt' is most inappropriate. The Bahamas is a parliamentary democracy and Bahamians do not wish to turn to a dictatorship for an example of how a country should be.
The fourth comment that Bahamians should bear with them as they disrupt the phone services that people rely on for emergencies or to make a living is nothing short of disrespectful to hard working, law abiding Bahamians throughout the country.
If I were able to bend the ear of those opposed to CWC/LIME buying a 51% stake in BTC, I would suggest that they re-group and start putting their resources and business plans together to enter the market as a cellular provider when the market is liberalised in three years.
Few of us want to resort to violence to achieve our ends in tis day and age, and besides didn't Sir Lynden figuratively lead us out of Egypt in 1967?
That's intended to be funny of course, but The Bahamas has come too far to be set back with that behaviour.
In the final, I'm delighted BTC will be out of governments hands and look forward to great things to come.
February 10, 2011
weblogbahamas
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