To the Ingraham government: ...lay the whole Bluewater Ventures Ltd / BaTelCo transaction on the table of the House of Assembly so that it will be available for public scrutiny

What is the whole truth behind Bluewater?

tribune242 editorial



AFTER a 14-year search for a suitable strategic partner and a lengthy, often acrimonious debate over the past few days, BTC opens its doors today as a privately owned company. Cable & Wireless, with a sound international reputation and solid financing is the new owner. Bluewater Ventures Ltd, the choice of the PLP government, is now history leaving a trail of mystery in its wake.

When one examines details of the bids that were published, it is difficult to understand why Bluewater -- the only company not to produce financials -- was the PLP government's company of choice. Many things have been suggested. Finance Minister Zhivargo Laing considered it a "fronting" operation with Bahamians hidden in the background. Whatever it was, all that has been made public -- and much is still hidden-- suggests that it was a company hastily thrown together especially for this bidding process.

At the end of a heated exchange between Opposition leader Perry Christie, whose government pushed the Bluewater deal to a hasty conclusion, and Prime Minister Ingraham who eliminated Bluewater, Mr Ingraham accepted that Mr Christie's last gesture before he left office "was beneficial to the Bahamas."

As he put out the embers of his dying government, Mr Christie took up his pen and ended the Bluewater deal.

"I would recommend," he wrote, "that the matter not proceed any further at this time."

Mr Christie argued that as his government had been voted out of office, it was only right that the final decision on the future of BTC be left for the new government.

Reading from the records on Monday, April 30, 2007 --two days before the general election -- Mr Ingraham said the PLP Cabinet met with Prime Minister Christie's approval. Mr Christie himself was absent, and so the deputy prime minister was in the chair. Mr Obie Wilchcombe was also absent from that meeting. It was at that meeting that the decision was made to sell BTC to Bluewater.

When asked by a House member what he knew about the Bluewater transaction, Mr Ingraham said he knew of a meeting also held at the Ministry of Finance when then Minister Bradley Roberts, "Brave" Davis, lawyer for Bluewater, and a "man from Bluewater" returned to the room and said "we have a deal."

Mr Ingraham said that before the 2007 election he had announced at an FNM rally that the PLP government had sold what was then BaTelCo to Bluewater. His speculation was that at the end "they ran scared," which caused the last minute change of mind.

As our readers will recall the hand-over in 2007 from one government to the next did not go smoothly. Although the FNM became the government on May 2, it was not until May 4th that it was able to assume office.

In the meantime several ministers of the former PLP government, said Mr Ingraham, went around announcing that the Bluewater deal had been approved and recommended that the persons involved should go to the Cabinet office to get "the letter."

By then the Ingraham government was in charge. Mr Ingraham said that the Secretary to the Cabinet came to him one day to inform him that "some people" were at the office saying that they wanted "the letter" -- obviously the letter approving the sale of BaTelCo to Bluewater.

Mr Ingraham thanked Mr Christie for going to London to testify at the hearing when Bluewater was demanding to be indemnified for the loss of BaTelCo. In Bluewater's agreement with the PLP, the Ingraham government would have had to pay $2.5 million if the exclusivity clause in the agreement had been breached. To get out of the Bluewater deal, the $2.5 million penalty clause was negotiated down to $1.9 million.

Mr Ingraham argued that although Mr Christie did not attend the Cabinet meeting that approved the sale of BaTelCo to Bluewater, the fact that he had given Cabinet members permission to meet, and agreed who should chair the meeting, he could not then unilaterally rescind their decision without another meeting and discussion. Mr Christie argued that he did not change the deal, but decided that his government was at an end and suspended it.

Mr Ingraham knows, said an angered Opposition leader, that "this was a process that I was going to guarantee the integrity of -- if only because Brave Davis was the lawyer -- I was not going to allow this matter to compromise the integrity of my government under no circumstances."

In a heated moment, Mr Christie probably suggested more than he intended. Obviously, he was not happy with the deal. His behaviour at the end shows a great deal of doubt. Already he had started the hand washing process.

Bluewater was a deal made on behalf of the Bahamian people. They are entitled to know the facts -- especially why Bluewater was given so many preferential concessions.

We feel it the duty of the Ingraham government to lay the whole Bluewater transaction on the table of the House so that it will be available for public scrutiny.

March 28, 2011

tribune242 editorial

Bahamas Blog International

Deficit Spending Plagues Successive Governments of The Bahamas

$164 Million Deficit Projected in The Bahamas National Budget 2004-2005

$164 Million Deficit Projected

By Candia Dames

Nassau, The Bahamas

candiadames@hotmail.com

Journal Staff Writer

05/27/04

The 2004-2005 budget projects a budget deficit of $164 million, a notable increase from the $122 million projected last year.

The $164 million deficit would be 2.9 percent of GDP.  The $122 million that was forecast last year would have been 2.2 percent of GDP.

Prime Minister and Minister of Finance Perry Christie, who made his budget communication in the House of Assembly Wednesday, said the deficit of 2.9 percent is about the same as the projected outturn for 2003/2004.

“This level of deficit is reasonable in view of the fact that the economy is on the threshold of expanding,” Mr. Christie said, “and, therefore, it would not make sense to deflate the economy at this time.

The prime minister said the government is still targeting a lower deficit than that realized in the years 2001/2002 and 2002/2003.

Mr. Christie noted that in 2001/2002, under the previous administration, the deficit reached 4.1 percent and in 2002/2003, the deficit reached 3.5 percent.  He pointed out that that was also in large part due to the fiscal policy of the previous administration, which had prepared much of the budget before the May 2, 2002 general election.

He said the projected deficit is “clearly an improvement over the previous years, demonstrating this government’s commitment to economic and fiscal prudence.”

The prime minister also reported that the continuing weakness of the global economy resulted in revenue targets not being attainable.

The 2003/2004 budget envisaged the introduction of a Flight Information Region, meaning that the government intended to take full control of the country’s airspace from the Americans.

As a result, the Bahamas air traffic control system would have been able to collect significant fees of between $40 million and $50 million to go mainly toward airport upgrades.

“The US authorities, who presently manage our airspace, had no objection in principle to the proposal, but were concerned with implications for Homeland Security,” Mr. Christie said.

Following constructive discussions with those authorities, it was agreed that instead of implementing the FIR, the US would continue to manage the airspace on security grounds, he said.

Mr. Christie added that the fees collected will be provided to Bahamian authorities and in this way the government’s intensions will be realized.

“The fact that the project did not proceed in 2003/2004 because of the external complications to which I have referred inevitably reduced revenue.

The government also expected to collect revenue from the sale of 49 percent of the shares in the Bahamas Telecommunications Company, but that too did not materialize during the fiscal year.

“The recent termination of the privatisation process does not mean that my government has abandoned the privatisation of BTC,” he assured.  “On the contrary, the privatisation of BTC remains an important item of my government’s economic agenda.

“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.”

The Free National Movement - FNM Wants Bahamas Telecommunications Company - Batelco Sold

FNM Wants Batelco Sold

Candia Dames

candiadames@hotmail.com

Nassau, Bahamas

23/04/2004

 

 

 

Saying that it is concerned about the state of affairs at the Bahamas Telecommunications Company, the Free National Movement lashed out at the government Thursday for failing to privatize BTC by now.

 

Meanwhile, State Minister for Finance James Smith told the Bahama Journal that several companies have expressed an interest in acquiring the 49 percent shares of the company, even though no bids are being accepted at this time.

 

The FNM said in a statement that under an FNM government, the company would have been "sensibly privatized" already.

 

"The privatization exercise, under the indecisive and stubborn PLP, has not only slowed to a crawl, but continues to cause the stakeholders - the Bahamian people - headaches and frustration," the FNM said.

 

The initial attempt to privatize BTC started more than five years ago under the FNM government, but ended abruptly several months ago, when the final bidder in the race, Blue Telecommunications, was rejected.

 

The Government of The Bahamas reportedly spent around $160 million preparing the company for privatization.

 

"By this time, had the PLP government continued the privatization process they found in place, the matter would have been resolved and Bahamians and businesses would today have access to a modern system."

 

Speaking to the Bahama Journal earlier in the week, Minister Smith said privatization is "not off the table."

 

"The rules for privatization which led to the short listing of the bidders and then the rejection of all bids, I think that part of the chapter must be officially closed," he said.

 

"We now have to look at a new model which could be talking to any companies that are still interested.  Several companies are saying that they are interested in purchasing BTC or becoming a partner in that process, but I think to be able to do so legally and effectively, we have to bring a formal end to the initial privatization process and I think we will be doing that and then we will continue to look around."

 

Blue is one of the companies pushing the government to sell, indicating that it is prepared to offer $350 million for minority ownership in the telephone company.

 

Asked if the government is taking this particular offer seriously, Minister Smith said, "We take all offers seriously and all serious offers seriously.

 

"The point is Blue was a part of the initial process and we have to bring that process to an end and then we are free to talk with Blue and any other company."

 

In the interim, he said, there is a need to continue to upgrade BTC in terms of its management structure and governance.

 

"There are a number of things that I think will be happening shortly with BTC," Minister Smith projected.

 

But the FNM insists that BTC is in a mess.

 

"Not only are BTC subscribers tired of poor basic services while the company claims it has enhanced modern technology, but local Bahamian business persons are increasingly angry over the fact that nobody in BTC - by extension in the government - seems to care about their welfare," the FNM statement said.

 

"These are Bahamians who, once BTC launched the quick cell programme in late 2001 and opened doors of business opportunity for the sale of cell phones, accessories, phone cards, etc, made arrangements to capitalize on those opportunities," it continued.

 

The FNM blasted BTC for setting up Cyber World shops in Nassau and Freeport "in direct competition with small Bahamian business persons, pushing mercilessly into the retail market, and effectively squeezing these people out."

 

The party also pointed to BTC's extensive advertising of the stores.

 

"That cannot be right," the statement said. "That cannot be fair. That cannot be just. That cannot be what the PLP on the campaign trail in 2002 promised would be help and hope for Bahamians."

 

The FNM said that the bottom line is that while BTC, steered by the PLP government, is going up and down the country promoting the introduction of GSM telephone service in The Bahamas, the fact is that the service is still currently unavailable for popular use."

The Governing Progressive Liberal Party (PLP) in The Bahamas Defends Against, 'a do-nothing government' Perception

This Ruling PLP Government really is a Do-nothing Government, says Tommy Turnquest, Leader of the Official Opposition, Free National Movement (FNM) Party 

PLP On The Defensive

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

21/04/2004

Fearing that its record as a government has become distorted, the Progressive Liberal Party has launched a comprehensive public relations initiative to correct what it feels could be a damaging perception.

"I believe that once people look at the facts and once people have the benefit of having access to the facts and they review those facts with an objective mind, they will come to the conclusion that this is perhaps the fastest starting government in the history of The Bahamas," said Raynard Rigby, the party's national chairman.

That was a claim Free National Movement leader Senator Tommy Turnquest would probably find laughable.

"This really is a do-nothing government," Mr. Turnquest declared Tuesday, while speaking with the Bahama Journal.

The PLP will take a ministry-by-ministry approach to the advertising campaign, Mr. Rigby said.

"I think the way you judge [whether we are the fastest starting government] is by looking at the first 23 months of this PLP government and by looking at the first 23 months of the FNM government.

“If you do that comparative analysis, we believe that the evidence is overwhelming, is compelling that this PLP government is much further ahead after 23 months in government, than the FNM was," he said.

Mr. Rigby said that the government is not facing a PR crisis as it carries out a "very responsible" campaign.  Once again he asserted that all is well with the governing PLP.

But Mr. Turnquest thinks otherwise.

He said the PLP "is obviously running, trying to counteract the prevailing feeling in this country, but they need to do it with factual information."

"I think the Bahamian people have been disappointed with their performance," he added.

Already, the PLP has started running radio ads informing listeners that it has constructed more than 500 houses since it came to office on May 2, 2002.  The ad says this compares to the more than 700 houses it claims the FNM constructed in 10 years.

"If [Housing Minister Shane Gibson] continues, in our first term, it is likely we would have built by far more houses than the FNM built in 10 years," Mr. Rigby said.

"If the minister can build all of those houses, it tells us he must be doing something.  He's not sitting at his desk twiddling his thumbs.  He's working for the Bahamian people."

But Mr. Turnquest found it "curious" that the government has chosen to start the campaign by focusing on its successes in housing.

"We intend to answer them in great detail," he said, revealing that his party plans to hold a rally at the R.M. Bailey Park on May 3.  It is the same night the prime minister has set aside for his second forum with the media to answer questions on national television.

Mr. Turnquest believes the government has a long way to go to change the negative perception held by some Bahamians.

"It is very clear to me and to thousands of Bahamians that the government is losing support and that people are becoming increasingly disenchanted with the PLP government," he said.  "They are not satisfied that sufficient attention and focus is being paid to governance.

"The PLP is now trying to counteract these claims by putting on advertisements and while that is good for radio stations and newspapers...that doesn't explain away their inactivity in terms of what they are doing."

Only two days ago, Prime Minister Perry Christie made a move of his own to set the record straight.

While speaking at the opening of the Golden Sun Development, a new housing project near Golden Gates, he dismissed what he called "little silly distractions" being put forth by "silly people."

Mr. Turnquest said he was disappointed by that comment.

"He must not use intemperate language when talking about Bahamians," Mr. Turnquest said."  Bahamians have a right to criticize particularly when his government is doing nothing."

Edison Key Says That He Would Not Rescind His Letter of Resignation from The Progressive Liberal Party (PLP)

There is no way in the world that I can go back on my decision of my resignation from the Progressive Liberal Party - PLP; and therefore it is final, says Edison Key 

Edison Key: "It is finished."

Key Shakes Up PLP

By Candia Dames

candiadames@hotmail.com

Nassau, The Bahamas

20/02/2004

Former Progressive Liberal Party Senator Edison Key revealed to the Bahama Journal last night that two government ministers asked him to rescind his letter of resignation, but he said there is no way on earth that will ever happen.

Mr. Key also said that he hopes that his resignation sent a strong message to the party that it needed to get its act together.

"I hope it will be a wake up call for the leadership in the party," he said.  "And I hope that it will only cause the support out there to grow stronger and [create] unity within the rank and file of the party."

He said he met with Works and Utilities Minister Bradley Roberts, Foreign Affairs Minister Fred Mitchell and the Member of Parliament for Cat Island, Rum Cay and San Salvador Philip "Brave" Davis, Wednesday night who asked him to think twice about the decision he had made.

Mr. Key said these men are people whom he respects highly, but he said after a "frank talk we came to the final conclusion that my decision is final."

"Progressive Liberal Party and, therefore, we agreed that I need to submit an official resignation to the president of the Senate, which I will do very shortly and it will be official," he said. "In the meantime, I guess you could call me Senator."

 

Mr. Key spoke to the Journal about a meeting he had with Prime Minister Perry Christie in Nassau Thursday morning at which time he said he personally delivered a copy of his letter of resignation, which he was considering making public to the media.  He said he presented the letter in front of three Cabinet Ministers.

Mr. Key added he was "a little bit angry" that the prime minister did not get the original letter more than a month ago.

Mr. Key also said his letter outlined the manner in which he was treated since becoming a Senator under the re-incarnated PLP government.

He said he made it clear to Mr. Christie that he respected the office of Prime Minister, even though he criticized the country's leader earlier this week for lack of direction and poor leadership.

"The office of Prime Minister to me is an office that I respect next to the office of God," Mr. Key said.  "I am a Bahamian citizen.  I have nowhere to go and if we can't respect the person who holds the office, that's one thing, but the office of Prime Minister should be there to protect every single Bahamian for justice and right.

"I hope that prime ministers now and in the future will recognize the important role that they have to play as the leader of our country."

He said his meeting with the prime minister went "very well."

But he said, "I told him how I had tremendous hopes during the campaign and up until a few months after the election.  I told him how disappointed and hurt I am about the way I have been treated.  I told him this thing goes deep to my soul and there is no way in the world that I can go back on my decision of my resignation and therefore it is final.

"It is finished."

Mr. Key said he and the prime minister "parted on a very good note."

When asked if he thought his resignation hurt the party, he said, "I certainly hope not."

"I never had any intension to hurt the party.  That is not my intension.  I hope that it will only make them stronger and bring the people together in one accord and not divide it like it is today because it looks like we are becoming further and further apart."

Mr. Key added, "The decision I made was for Edison Key.  Other people will decide what they want to do."

"I've given 30-something years to this party and I'm still very much alive," he said.

Mr. Key added that he did not feel that he needed to attend a PLP council meeting held Thursday night because he didn't think Members of Parliament and party officers would speak freely if he were present.