The battle between the Barrow administration and the Ashcroft group for the control of Belize Telemedia Limited (BTL) enters a new round with a move by Government to challenge Friday’s bombshell ruling in the Court of Appeals, declaring that the Government acquisition of the phone company back in August 2009 is unconstitutional.
“Whatever we need to do, we will do legally...,” Prime Minister Dean Barrow told Amandala on Monday, insisting that Government will do all in its power to maintain control of the company. “Fix this we will!” he said.
Immediately after the ruling, handed down on Friday evening at 4:00, former executive chairman of BTL, Dean Boyce, went over to BTL to resume the position that he was booted from nearly two years ago, and Net Vasquez, the Government-appointed executive chairman, packed his briefcase and went home.
However, things have made a 180-degree-turn again since Friday evening. Boyce is back out the door. Heavily armed police and guard dogs were posted at BTL’s St. Thomas Street headquarters and Boyce and his attorney, Godfrey Smith, SC, were barred from the compound by police officials. Boyce has since set up what Smith has described on 7 News as “parallel headquarters,” issuing instructions to BTL staff, in defiance of Government’s stance that the status quo at BTL has to remain.
BTL workers are caught in the middle. Boyce issued a press release today with the BTL logo, declaring that Martha Molina has been appointed BTL’s new CEO.
“Any party, including former board members, who persist in squatting on BTL premises and attempting to interfere with the running of the company is acting unlawfully, and the board reserves all its rights to take legal action against those individuals,” said Boyce’s release.
“The public is further advised that former directors led by Mr. Vasquez, including its Chief Operations Officer [Karen Bevans], have NO authority to speak or contract for BTL,” the release further stated.
Barrow told Amandala that he is prepared to give the current BTL directors, appointed by the Government, a written indemnity, in the face of threats by the Ashcroft group that they can get into trouble for continuing in those positions.
Despite Boyce’s warnings, the Government of Belize has taken the hard-line position that unless the Ashcroft team returns with an enforcement order from the Court for Government to hand back the company, the Government of Belize will retain control of the company.
Responding to that position this evening, Eamon Courtenay, SC, attorney for one of the appellants, British Caribbean Bank Limited, told Amandala that no enforcement order is needed, since the Court of Appeal has declared the statutory instrument, appointing new directors of BTL back in August 2009, to be null and void.
“We are preparing the necessary court paper to address the unlawful behavior of former directors of BTL,” said Courtenay, who reported that Government is still not letting Mr. Boyce back into BTL.
The Court of Appeals case was heard in January and June 2011 by Justices Dennis Morrison, Brian Alleyne and Boyd Carey. The central question was whether the government takeover was legitimate: the Court ruled that it was not!
Morrison wrote in the judgment that, “...acquisition of the property was not necessary to achieve the public purposes set out in the Statutory Instruments.”
The appellants had accused the Government of violating section 17(1) of the Belize Constitution, which governs the compulsory taking of property.
Morrison commented that, “It is difficult in examining the Prime Minister’s statement [at the acquisition of BTL], which the Minister deposed contained his reasons, to find a justification for the acquisition in terms of the stated purpose.” It is a matter of regret to have to say that the statement did single out one individual [Michael Ashcroft] for adverse comment,” wrote Justice Morrison. He added, “...it seems reasonable to find that since the stated purpose is not demonstrated, there must be some other purpose, that not being legitimate.”
Prime Minister Barrow told our newspaper that Government did not expect the Court of Appeal ruling and will fight it in the higher court – the Caribbean Court of Justice. Barrow said that at this moment, Government cannot disclose exactly what it will do to maintain control of BTL.
“As long as they do not go for an enforcement order, they can’t touch the company,” the Prime Minister said, adding that the Government is moving to appeal the decision at the level of the Caribbean Court of Justice (CCJ).
He also said that the third parties who had bought shares in BTL will have the right to be represented in any such proceedings for an enforcement order, which would lead to a drawn out fight. This would mean that GOB would “have room within which to maneuver,” and the Ashcroft group would not be immediately able to take control of BTL.
Barrow said that he had gotten legal advice from Senior Counsel Lois Young, who left Belize to represent Government at the Privy Council, which still has a few outstanding cases from Belize, Legal Advisor Gian Ghandi and two international lawyers he declined to name at this time.
In regards to those Belizeans who had purchased some of the shares formerly held by the Ashcroft group from the Government, Barrow said that he hopes those persons would continue to hold those shares, as even an enforcement order from the Court of Appeal would not necessarily mean that the shares would have to be returned to the Ashcroft group.
Barrow said that the Government would be making the case to the Court of Appeal that in the circumstances—if the CCJ upholds the ruling that the BTL acquisition was unconstitutional—it is better to pay the former shareholders damages in addition to the requisite compensation.
What would be the extent of those damages? We asked Barrow if he could hazard a guess. He said that to date, the Government of Belize has collected about $18 million in dividends from the BTL shares and damages may amount to this figure plus a little bit more, with a rate of return.
Persons who had bought shares in BTL from the Government, said Barrow, can ask for their monies back if they wish, because the funds have been held in escrow at the Central Bank. He suggested, however, that shareholders wait before asking for their money back, because, he assured, “I am saying we will fix this.”
As for the SSB’s $50 million investment in BTL, Barrow said that the board is unlikely to take a decision on that matter in the days ahead, because Young, SSB’s chairman, will be out of the country at the Privy Council.
Barrow said that BTL’s staff is firmly behind the government after reports Friday evening that Boyce has a plan to release between 50 and 100 workers from BTL.
Attorney for BCB, Courtenay, told Amandala on Friday that they may also pursue claims for damages against the Government of Belize.
“I think first of all the shareholders and management would have to go back into the company and to see what has happened. If indeed there has been any damage suffered by the shareholders, then they would have to consider their position,” said Courtenay.
Attorneys Eamon Courtenay, SC, and Ashanti Arthurs-Marin appeared for the British Caribbean Bank Limited; Godfrey Smith, SC, and Magali Marin-Young for the appellant Dean C. Boyce. Ms. Lois Young, SC and Nigel Hawke appeared for the respondents in both appeals.
Courtenay said that he hopes the Court of Appeal would hear the matter of any enforcement order speedily. The three judges, he said, are out of the jurisdiction and Government will have to facilitate their return.
“We will see if Government will use its power to frustrate the effort of the litigant to get a fair hearing,” said Eamon Courtenay, the attorney for British Caribbean Bank, a member of the Ashcroft group.
In a statement issued today, Government said that it “...regrets the uncertainty that the legal developments have caused, especially to the staff of Telemedia, but also to the wider public. But Government will now use every recourse to preserve the status quo.”
Amandala

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