BELIZE CITY, Wed. Aug. 18, 2021– At a press conference held by the United Democratic Party on Tuesday of this week, area representative for the Albert Division, Tracy Panton, who sat at the UDP head table with UDP leader, Hon. Patrick Faber, and Orange Walk East area representative, Elodio Aragon, Jr., commented on the decision made by several government ministries to procure the telecommunications services of the privately owned Speednet Communications Limited (SMART) — thus replacing the nationally owned Belize Telemedia Limited as their telecom provider. The move has been decried by many in the community—including the Public Service Union (PSU) and BTL staff— as an act of nepotism by Prime Minister Hon. John Briceño, whose family members are reportedly prominent SMART shareholders.
The sentiments that Panton expressed at the press conference were similar, and she went on to say that the switch to SMART is an “assault on nationalism”:
“I was asked by the Party Leader to speak on this imminent move, this move that’s afoot for the Government of Belize to transfer its telecommunications provider from BTL to Smart. Need I remind you that it was in the 1998 to 2003 government administration that was led by Said Musa that the national interest of our utility companies, both BTL and BEL, was removed from the people of Belize and put in the hands of private interests. In 2009, under the Barrow-led UDP administration, there was every effort taken to put the shares of BTL and BEL in the hands of our national purse,” she stated at the onset of her remarks.
She then went on to point to the implications of the government’s switch to SMART, and how it will impact entities that are critical to the financial well-being of countless Belizeans. “Let me say that in the case of BTL, forty-nine percent of the shares are owned by the Government of Belize. That is our taxpayers’ dollars that have been invested. Another thirty-four percent have been invested by SSB. That, my friends, are our Social Security contributions that have been invested. And another eight percent from the Central Bank of Belize. Whatever proceeds we get from our foreign exchange earnings, some of that has been invested in BTL. That is ninety-one percent of the shares that belong to the Belizean people. I say to you that this move is the most — in my humble view — egregious display of nepotism by this current Government, this Blue Government, this PUP government. It’s also an assault on nationalism,” she said.
SMART, in response to public outcry that followed a Public Service Union press release that had made the public aware of the switch that was taking place in GOB ministries, issued a statement defending the GOB’s actions. It said that GOB was “accepting the best offer for provision of services, taking into consideration price, quality and range of services. As a result, BTL and Smart can now equally pursue government business by way of tenders.” They further claimed in the statement that they submitted proposals to the GOB that would afford them considerable savings and a reduction of wastage. The PM also spoke with the media to confirm that both SMART and BTL had the opportunity to meet with the Ministry CEO’s and to present an offer.
“There is no policy that the government is moving from one company to the next company. The issue is simply a matter of economics. The CEO from Rural Development saying that they have these thirty dollars plans for their workers that are out in the field. And they were complaining that their thirty dollars are up quickly. And they met with BTL, and they met with SMART, and SMART gave them a better deal and that is why they decided to go down that route. But, I can tell you that there is not a single person in government or outside of government that can say I have called anyone of them to move their business from BTL to SMART… it is true that both companies were invited to make a pitch for the services, because there is a lot of dissatisfaction with the delivery of service, customer service from BTL providers. And so, both companies were invited to come in with the CEOs, not with the ministers. I wasn’t even aware that that was going to take place until after the fact,” stated Hon. Briceño.
Members of BTL’s management, however, indicated to a local newspaper last week that they were not given an opportunity to present a counter-offer: a package that would provide GOB with more value than whatever SMART was allowed to present — which leads to questions about whether a truly “equal” pursuit of tenders took place. Questions have also been raised about the context in which the term “matter of economics” was used by the Prime Minister — specifically how savings garnered through changes in “thirty-dollar plans” can be compared with the millions of dollars in pensions at SSB and in BTL-issued dividends to GOB that, according to Hon. Panton, could be at stake.
The Belize Communication Workers Union (BCWU) articulated those concerns in a press release issued today, which states, “Our estimate from over 10 years of the audited financials of BTL is that over $80 million of dividends declared has been for the Government of Belize alone. BTL’s Articles of Association mandate that a minimum 45% of net profits is declared as dividends to Shareholders. Therefore, these decisions have long term effects, as any revenue diverted from BTL to another entity is a reduction in the dividends paid to Government of Belize. The people of this nation are immensely affected for every cent of taxpayer revenue that is lost or not reinvested. Therefore, the proper level of transparency and adherence to protocol is paramount.
“The lack of patriotic morale on the ministries’ behalf also needs to be addressed forthwith, and the emphasis of a failing BTL is placed on the poor judgement of the government of this nation! Please be reminded that the Belizean shareholders, namely the Social Security Board, the Central Bank of Belize and the citizens of this great country, will be directly impacted by this revenue lost and the BCWU along the people of this nation must stand in solidarity to see this self-destructive act desist!”
The press release also stated, “Our condemnation of the three ministries, namely: the Ministry of Finance (CITO), the Ministry of Rural Transformation, Community Development, Labour, Local Government and the Ministry of Foreign Affairs, stem from their sudden and unjustified termination of phone lines, cell phone plans and the non-renewal of MS365 Licenses, which has resulted in over three-million-dollars in losses to company revenues at BTL. The BCWU fails to identify any logical reasoning behind these changes made by the appointed ministry personnel. Therefore, we are forced to deduce that this act is a complete abuse of power with direct nepotistic validation to Speednet Communications Limited, an entity with which several major Government elements has known ties. This act takes money directly out of the public purse and places it in the hands of private citizens whose direct link to the government cannot be overlooked.”
The BCWU went on to plead with the Government of Belize to reverse its decision. The release states that they “ask that the Cabinet elect to take immediate action to rectify this behavior!” “Likewise, we ask that the Hon. John Briceño mandates that the services terminated, and the service not renewed be reinstated immediately. We also ask that no services be terminated without proper negotiations with the national telecom, which has always been done in the past,” the release further states.
The Union further remarked in the release: “Such acts [the switch to SMART] completely contradict this effort and is a spit in the face of all Belizeans who work tirelessly to make their country a better place to live in. Too often have we seen the narrative where our elected leaders use their position for personal gain rather than public interest. We can no longer continue to stand by idly while such outrageous acts take place with no regard for the consequences of such actions.”
At the conclusion of the release, the BCWU states, “We close with a plea to the Belizean People, that they join us in this fight against such irresponsible behavior and ask for them to join us by supporting our National Telecom, as it is ultimately for the best interest of Belize. We strongly detest the statement released by Speednet Communications Limited (Smart), as they seem to be dictating the policies that the government should follow. We maintain that the support of our National Telecom is in the best interest of all Belizeans, and especially the government, considering that the success of the company is directly reflected in our economy. As the statement goes, ‘Let’s Keep Our Dollar at Home!’”