The Progressive Liberal Party (PLP) secret attempt to sell BTC to Blue Water Ventures before the 2007 election

The PLP and their Blue Water 'secrets'
tribune242 editorial


THE PLP seems to be a party always anxious to distance itself from its own unimpressive past --unless, of course, it has deliberately cultivated a memory that takes a convenient leave of absence when a situation gets too hot to handle.

Whichever way one looks at it, PLP leaders are being disingenuous to suggest that government is failing to disclose information on its negotiations with Cable & Wireless for the 51 per cent purchase of BTC for $210 million.

They have forgotten their own secrecy in their attempt to sell BTC to Blue Water Ventures before the 2007 election when they were defeated at the polls.

At the time --2006-2007 -- much was written and speculated about this secrecy. It was only after the FNM came to power that the public eventually knew what had gone on behind those closed doors.

Today Bahamians know more at this early stage in the negotiations about what is proposed with Cable & Wireless than anyone ever knew from the PLP about their negotiations with Blue Water.

The Tribune reported in January, 2007, after all other bidders were locked out so that the PLP government could continue to woo Blue Water, that "the secrecy and lack of transparency ... has caused some frustrations, not only among other potential leaders such as C&W, but members of the Bahamian financial community and some BTC staff."

It was suggested that the Christie government was unlikely to conclude BTC's privatisation before the 2007 election, which was closing in on it. The reason given was concern for the considerable number of votes tied up in BTC's estimated 1,200 workers and their relatives. "A privatisation, especially one that resulted in redundancies, could be unpopular at election time," The Tribune was told. And so today, although the party probably won't admit it, even they recognised that to succeed, redundancies were necessary. It was probably another reason for the secrecy.

And, as we said, in this column yesterday, no matter who takes over BTC -- even an astute Bahamian business group -- staff has to be trimmed for the sake of good business.

BTC has been on the auction block for the past 11 years. In 2007 The Tribune reported that the best offer that was received in 2003 was when BahamasTel consortium, backed by Citigroup and JP Morgan Chase, bid $130 million for a 49 per cent stake. At the time it valued the company at just over $260 million.

However, by 2007, it was clear that BTC had dropped even further in value, faced with competition from IndiGo Networks' fixed line, Voice over IP and Cable Bahamas on Internet. Once it loses its cellular monopoly, it will be difficult to even give it away.

BTC has stood like a colossus astride this country, stifling its economic growth.

James Smith, in those years minister of state for finance, could only tell us week after week that the government-appointed committee had completed its work for privatisation and had submitted its recommendations to Cabinet. This was the highest that the veil, which concealed their "secret," was ever lifted. From then on there was silence.

Mr Smith said that "a world class, efficient telecommunications sector" was required for both the tourism and the financial services industry.

And in a tone of resigned desperation, he admitted that "all the time spent looking at other (privatisation) players has basically allowed this existing dinosaur to entrench itself."

And it is into this "entrenched dinosaur" that the government is trying to breath new life to give it a chance to be of benefit to the country.

So much time and energy is being taken up with the wishes of the unions and the politicians that little thought is being given to the Bahamian people, who for years have had to pay high prices for inferior service.

The "dinosaur" has suffocated this country for much too long, Bahamians now need some breathing space to grow and prosper. They deserve better service, lower prices and more choices and a telecommunications company that will not only do them proud but will be a profitable investment.

A unionist has suggested that Bahamian consumers should be included in the debate as to whether Cable and Wireless should be the lead partner in a new BTC that will give them better service, and lower prices.

It is a good idea. The unionists might not like what they hear.

December 10, 2010

tribune242 editorial

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