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
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.
Showing posts with label Bahamas Telecommunications Corporation. Show all posts
Showing posts with label Bahamas Telecommunications Corporation. Show all posts
Saturday, February 12, 2011
Wednesday, December 8, 2010
In Opposition to the BTC Deal
The Bahama Journal Editorial
That we live in perilous times is no longer a matter that incurs debate; it is simply taken as a given that, these are surely times when practically everything that was once stable seems hell-bent on being ripped from its moorings.
In this we would surely include certain givens as they related to how the Bahamas could and should orient itself to the region and to the world market.
In this regard, we would place all of what we once took for granted as it pertains to the supremacy and desirability of relying on foreign direct investment; and here sometimes to the exclusion of Bahamian investment.
For a fairly long season, this idea worked its magic; and here it had the salutary result of creating a fairly self-confident middle class [albeit one that lived heavily off borrowed money]. But as some of our people would attest and confirm, for a fairly long while, it sure did seem as if this kind of scenario would persist for a while longer.
And then, there was that other emerging trend where and when there arose such a high respect for the magic that was said to be inherent in market forces. As a consequence, very many governments around the world soon came to find themselves dragooned into becoming true believers in the new mantra.
This slew of new and true believers in the so-called magic of the market place included some of our leaders and their myriad of followers.
Indeed, such was the magnetic force of the new idea that some who should have known better were soon enough found to be dancing and sometimes even prancing to the same tune.
As we recall, this was the context wherein there emerged that consensus behind ideas to privatize this or that public owned entity.
Early on the Bahamas Telecommunications Corporation was identified for the privatization experience and treatment.
While the times have obviously changed and while practically no-one with an iota of sense continues that blather about the so-called magic inherent in so-called market-forces, BTC is set to be divested of majority control on the Bahamian side; with that control going to Cable and Wireless.
And yet again, we are learning that, there is currently a Memorandum of Understanding [MOU] that the government signed with the regional communications giant (which is known as LIME throughout the Caribbean) provides for the sale of a 51 percent stake in BTC for $210 million.
We are also told that an additional $21 million will be collected by the government from the 10 percent stamp tax associated with the sale.
Note also that the said MOU also provides that the government will leave $15 million of BTC's cash in the bank to provide operating capital for LIME.
As reported, BTC had just under $66 million in cash at the end of September, according to financial records obtained by our Journal.
Evidently, this implies that if the sale is concluded in the next several months and BTC's cash reserves are significantly impacted, at least $51 million of that cash would go to the public treasury.
At this juncture, then, the word we get is to the effect that, if BTC maintains the cash it now has until the targeted sale date of February 15, 2011, the money generated by the sale of BTC would amount to more than $282 million.
While this is good as far as it goes, we are loath to support this move.
In this regard, [and as everyone would know], the potential buyer is Cable and Wireless.
In addition, we are now being told that, the proposed sale of the Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC) could net the government nearly $300 million by the time the deal is done.
While this is apparently a done deal, we are adamant in our conclusion that, more effort should have been put into seeing to it that this entity stayed in Bahamian hands.
This is our view not only because of our enduring concern for the well-being of our country and its people; but because we are absolutely convinced [as in the case of Cable Bahamas] BTC could and should be owned by Bahamians.
And clearly, we continue to be impressed by arguments that tell us that, there are some utilities such as those relating to water, electricity and communications that should – in the interests of national security- remain in the hands of Bahamian nationals.
Furthermore, we are absolutely convinced that, there remains a crying need for the Bahamian economy to stand –as it were - on two feet; with one firmly planted in the Bahamas by Bahamians and with the other just as firmly planted by foreigners.
Such a move would put this country of ours on a much firmer footing.
And for sure, this is precisely why –in principle- still opposed to this proposed link-up by BTC with Cable and Wireless.
December 8th, 2010
The Bahama Journal Editorial
That we live in perilous times is no longer a matter that incurs debate; it is simply taken as a given that, these are surely times when practically everything that was once stable seems hell-bent on being ripped from its moorings.
In this we would surely include certain givens as they related to how the Bahamas could and should orient itself to the region and to the world market.
In this regard, we would place all of what we once took for granted as it pertains to the supremacy and desirability of relying on foreign direct investment; and here sometimes to the exclusion of Bahamian investment.
For a fairly long season, this idea worked its magic; and here it had the salutary result of creating a fairly self-confident middle class [albeit one that lived heavily off borrowed money]. But as some of our people would attest and confirm, for a fairly long while, it sure did seem as if this kind of scenario would persist for a while longer.
And then, there was that other emerging trend where and when there arose such a high respect for the magic that was said to be inherent in market forces. As a consequence, very many governments around the world soon came to find themselves dragooned into becoming true believers in the new mantra.
This slew of new and true believers in the so-called magic of the market place included some of our leaders and their myriad of followers.
Indeed, such was the magnetic force of the new idea that some who should have known better were soon enough found to be dancing and sometimes even prancing to the same tune.
As we recall, this was the context wherein there emerged that consensus behind ideas to privatize this or that public owned entity.
Early on the Bahamas Telecommunications Corporation was identified for the privatization experience and treatment.
While the times have obviously changed and while practically no-one with an iota of sense continues that blather about the so-called magic inherent in so-called market-forces, BTC is set to be divested of majority control on the Bahamian side; with that control going to Cable and Wireless.
And yet again, we are learning that, there is currently a Memorandum of Understanding [MOU] that the government signed with the regional communications giant (which is known as LIME throughout the Caribbean) provides for the sale of a 51 percent stake in BTC for $210 million.
We are also told that an additional $21 million will be collected by the government from the 10 percent stamp tax associated with the sale.
Note also that the said MOU also provides that the government will leave $15 million of BTC's cash in the bank to provide operating capital for LIME.
As reported, BTC had just under $66 million in cash at the end of September, according to financial records obtained by our Journal.
Evidently, this implies that if the sale is concluded in the next several months and BTC's cash reserves are significantly impacted, at least $51 million of that cash would go to the public treasury.
At this juncture, then, the word we get is to the effect that, if BTC maintains the cash it now has until the targeted sale date of February 15, 2011, the money generated by the sale of BTC would amount to more than $282 million.
While this is good as far as it goes, we are loath to support this move.
In this regard, [and as everyone would know], the potential buyer is Cable and Wireless.
In addition, we are now being told that, the proposed sale of the Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC) could net the government nearly $300 million by the time the deal is done.
While this is apparently a done deal, we are adamant in our conclusion that, more effort should have been put into seeing to it that this entity stayed in Bahamian hands.
This is our view not only because of our enduring concern for the well-being of our country and its people; but because we are absolutely convinced [as in the case of Cable Bahamas] BTC could and should be owned by Bahamians.
And clearly, we continue to be impressed by arguments that tell us that, there are some utilities such as those relating to water, electricity and communications that should – in the interests of national security- remain in the hands of Bahamian nationals.
Furthermore, we are absolutely convinced that, there remains a crying need for the Bahamian economy to stand –as it were - on two feet; with one firmly planted in the Bahamas by Bahamians and with the other just as firmly planted by foreigners.
Such a move would put this country of ours on a much firmer footing.
And for sure, this is precisely why –in principle- still opposed to this proposed link-up by BTC with Cable and Wireless.
December 8th, 2010
The Bahama Journal Editorial
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