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

Bahamas Blog International