By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The “national interest” means the Government has no reason to leave the Bahamas Telecommunications Company (BTC) alone, despite its projections of a 129 per cent increase in the dividends it will earn from the carrier.
Franklyn Wilson, a member of the four-person committee that has been negotiating with Cable & Wireless Communications (CWC) over the Christie administration’s bid to regain a majority equity stake, said the issue went “way beyond another $5 million”.
The Government’s 2013-2014 Budget shows the administration expects to earn $11.467 million in dividend payments from BTC during the upcoming fiscal year, more than double the $5 million it projected for 2012-2013.
The projected dividend increase is likely to reflect improved profits and operating income at BTC, and will again raise questions as to why the Government is devoting so much time and resources to winning back a majority stake in the privatised communications carrier.
Given BTC’s performance, under CWC’s management and ownership, some observers are likely to argue why the Government does not leave BTC ‘well alone’.
And with two members of the negotiating committee, ex-Ministry of Finance legal adviser Rowena Bethel, and former BTC chief executive Leon Williams, currently on the Board of Directors, together with PLP chairman Bradley Roberts, the Government is likely to have had a good indication of expected dividends.
However, Mr Wilson told Tribune Business: “The process that we’re engaged in here, that’s in the national interest and goes way beyond a few million dollars.
“There are other issues that go beyond getting another $5 million. There’s some other critical issues involved, and I continue to say that it’s my hope and prayer that the public get to understand that, in the fullness of time, and know why that is.”
Mr Wilson said talks between the Government’s negotiators, who also include former attorney-general Sean McWeeney, and CWC had not been “abandoned”, although he conceded they were moving slower than expected.
He also hit out at the former Ingraham administration for “deep evidence of unfortunate governance” related to the BTC privatisation and ultimate deal with CWC.
Yet he declined to reveal specifics when pressed by Tribune Business to go into detail on his allegations.
“The process is going a lot slower than both parties expected, but it’s not been abandoned,” Mr Wilson told this newspaper.
“The principals under which we started have strengthened, and I think, quite frankly, respect has grown.”
He further added: “I don’t want to pre-empt the details, but the evidence of unfortunate governance is deep - very, very deep.
“There are a lot of things that never, ever should have happened. We are still trying to get the deal done.”
Comments
John 10 years, 11 months ago
YOU DO THE MATH! BTC did not wave no magic wand or do no great managerial event to cause an additional $6 million in dividends to the government. To say simply, the company took the money from the wholesale and retail phone card vendors! Before C&W took over BTC, phone card customers were receiving 25% of gross sales to share between themselves. BTC/C&W reduced this rate to around 10%. BTC card/top up sales is around $130,million a year, more or less . So lets assume that BTC sells 20% of its phone cards/top up in its own outlets. That leaves about $105 million to be sold by vendors. If BTC reduced the profits paid to these persons by 15% that should be a direct savings of $15.5 million to the company. Now remember BTC also made a lot of its staff redundant and hired new staff at lower wages and salaries and less benefits. In addition, the company claims that since C&W took control, it has not only increased sales in all divisions, including home phones sales and service, internet, overseas calls, etc. BTC/C&W also claims it now has greater purchasing power and the cost of many items like phones, internet modems and plant equipment should cost them less So then BTC increase in its bottom line should be much more than the $15 million it took from its wholesalers and retailers.
Puzzled 10 years, 11 months ago
With financial experts such as John on island it is strange that the Bahamas are in the fiscal state that we are in.
ThisIsOurs 10 years, 11 months ago
Leave John alone:)
proudloudandfnm 10 years, 11 months ago
Now please sell the rest of our corporations, sell 51% and keep 49% so we can simply collect revenues.
ThisIsOurs 10 years, 11 months ago
I thought the PM admitted months ago that we simply did not have the money to buy BTC back. Why are people still being paid to investigate the possibility??
( ok maybe a rhetorical question, the funny thing is, the realization of profits beyond their expectations may put even more steam under them to get this cash cow back...and of course once they get it, they will run it into ground by immediately doubling the staff count, thereby increasing the overhead and reducing efficiency)
Madalina 9 years, 6 months ago
I think that Government of every country needs to take attitude in order to maintain and respect the national interests and rights. He has the obligation to watch and mediate the main forces in every institution. http://magazinonlinenou.wordpress.com/">Thank you!
Daniela 9 years, 6 months ago
There is about a lot of money! The Government gained a big part of money from dividends payments for 2013-2014. Hope they are doing good things for the community with that money! http://cosuricadoupaste.tumblr.com/">Daniela
Dorian 9 years, 6 months ago
Did they bought BTC back? I enjoy every time when I see that the Governement is trying to respect the national rights. http://radusandaandreea.wix.com/sanat...">Thank you for your articles!
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