The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

and NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Telecommunications Company (BTC) yesterday confirmed it had gone ‘back to the future’ with the long-awaited return of Leon Williams as its chief executive, its controlling shareholder denying there had been “pressure” from the Prime Minister or Board for his appointment.

Cable & Wireless Communications (CWC) chief Phil Bentley, also unveiling a $200 million, three-year investment programme at BTC, said he “can’t think of a better person” to take the company forward.

And he slammed the Bahamian media for what he called “misguided comments” surrounding Mr Williams’ appointment on what was described as a 12-month contract, a move designed to give BTC and CWC time to implement “a longer term succession plan for the chief executive role”.

In a note to BTC staff explaining the rationale for Geoff Houston’s replacement with Mr Williams come August 31, Mr Bentley said it was vital to ensure “continuity of management” with cellular liberalisation - and a competitor in BTC’s most lucrative market - looming as early as 2015 or 2016.

Mr Bentley, in the note obtained by Tribune Business, said: “We have a major challenge coming this year with mobile competition and new regulatory conditions. Leon’s appointment will ensure we have continuity of management during this period. It is vital that we work together as a team to prepare the business.......

“Going forward, I have laid out a new investment-led strategy for BTC. In short, Cable & Wireless will be one of the largest investors in the Bahamas over the next three years, but this does mean that we have to use the global buying power and technology blue-print of Cable & Wireless if we are to succeed in a competitive market.”

Mr Bentley, who appeared defensive at yesterday’s conference, denied that Mr Williams’ appointment was a part of the ‘2 per cent’ deal with the Government that will see those BTC shares transferred into a charitable foundation.

He asserted that Mr Williams, who was fired as BTC’s chief executive in 2008 prior to the privatisation that saw CWC acquire a majority stake for $210 million, was “the right man for the job”.

Mr Williams currently serves as a BTC director and special adviser to Mr Bentley, and the latter added: “Mr Williams knows the business well. We want to ensure that we have a representative today who is a Bahamian leader; who could win the hearts and minds of the Bahamian people.

“There is a lot of speculation in the press, a lot of it frankly misguided comments that I think have been quite hurtful, particularly to Leon. Let me just say categorically: This was a decision that I have taken.”

Mr Bentley added: “I have been under no pressure whatsoever from the BTC board. I have been under no pressure whatsoever from the Prime Minister. It was my decision, and I think it was the right decision. I wanted someone who understands technology and understands the Bahamian people, and I can’t think of a better person who meets both of those requirements. I feel very confident that Leon is the right man to move on.”

Mr Williams, who was dismissed under the Ingraham administration, departed in some controversy. He reached an out-of-court settlement with BTC over the terms of his pay-off/departure, and was publicly criticised by former chairman Julian Francis.

Mr Williams shot back yesterday, arguing that BTC’s financials showed increased profitably during his tenure.

 “We have a lot of work to do to prepare this company for competition, and not just competition but to create the  company to serve the customers. While competition is a big goal, we really want to be able to serve our customers. BTC is being run by Bahamians. It is a Bahamian company. Stay with us, we will get you through the tough times,” said Mr Williams.

Still, the irony of his appointment will not be lost on many observers. For Mr Williams, who was one of the biggest opponents of the BTC privatisation and sale to CWC, is now back in his old job - and employed by a firm he previously lambasted.

Many believe that Mr Williams’s return was on the cards from the moment the Government began negotiating the return of majority Bahamian ownership at BTC, with some sources suggesting the Prime Minister was “adamant” he come back.

Mr Williams is known to be especially close to PLP chairman Bradley Roberts and this administration as a whole, and several sources suggested to this newspaper that his appointment was likely to have a divisive impact on BTC staff.

One source said: “The staff are upset. They had settled in under Geoff [Houston] and thought he was one of the good guys. There was no cronyism or political stuff going on. They’re worried things could change dramatically.”

Mr Williams’s comeback is thus raising the spectre that BTC’s pre-privatisation habits could return, and the source added: “People are a little worried, scared of what this brings. They think the political things are back, we have moved away from an entrepreneurial spirit and that it’s going backwards.”

Mr Bentley said BTC was now poised for a growth strategy. “Our strategy in CWC and BTC is to increase our investment in our networks,” he added.

“This is a business where customers expect the very best service, and to give the very best service we must have the very best network.  BTC is our second largest investment in the market across Cable & Wireless, and essentially we are announcing today a $200 million investment in networks  in BTC over the next three years.

“We will be investing and improving our mobile network,” Mr Bentley said. “We are aware that  dropped calls are still an issue. We will be investing in new IP, Internet Protocol technology that leverages our fixed networks with our mobile networks.

“We will also  be investing in our IP TV to give more TV services to our customers, as well as improving reception inside buildings and some of the soft spots in the islands where mobile connections have not been as good as they could have been. It’s an investment-led strategy, and I felt that we needed a technology leader to take us throughout  the next phase of our development.”   

Bernard Evans, head of the Bahamas Communications and Public Officers Union (BCPOU), said Mr Houston had been an “above the board CEO”.

“Obviously, when Mr Houston came in, I think we were at odds because he was the face of CWC and he got the brunt of it, but I think that over the last two years we have come full circle,” Mr Evans said.

“We came to appreciate him. A lot of things we asked for, although he may not have gotten it immediately, he was accommodating. He was an above the board CEO. We will miss him.”   

Mr Evans added: “We have always advocated for a Bahamian to head BTC. We understand that Mr Houston is now stepping down. I don‘t think it could have been based on his performance. They were making profit after profit with him there. 

“Mr Williams is one of us. He is a Bahamian. Our contract expired since the end of April , and we look to meet with Mr Williams on that. We will continue to fight for the rights of employees. It doesn’t matter who the CEO is; we will continue to have our challenges. At the end of the days, we don’t make the decision on who the CEO is. We hope that Mr Williams will remember where he came from. We have no concerns. We can’t be too concerned with who is in charge, as long as they respect and are fair to the employees at BTC.”