The Tribune

WHY IS it important for the Bahamas government to try to renegotiate a contract, signed by the Ingraham government, to regain controlling shares in Bahamas Telecommunications Company?

How will it benefit the Bahamian people, who, according to Mr Christie, gave him the mandate on being elected to get “their” telecommunications’ company back from foreign control.

Under the Ingraham government, 51 per cent of BTC was sold to Cable & Wireless for about $210 million with the Bahamas government retaining 49 per cent of the company’s shares. Under the Ingraham government some of these government held shares were to be sold to Bahamians, who could have then patted their pockets and indeed boasted that in fact they did own a piece of their company.

However, on becoming the government, Mr Christie announced that there would be no sale of shares to Bahamians. Instead government wanted 51 per cent of the shares under its control, leaving Cable & Wireless (C&W) with a 49 per cent minority shareholding. In other words roles were to be reversed with government, rather than C&W, being the dominant player.

We are serious in asking the Christie government what would be the benefit to each Bahamian if the Bahamas government owned 51 per cent of this company in “the people’s” name? And don’t insult us with nationalistic jingoism and false pride about owning “we Bahamian company.” Already “we company” in less than a year of foreign direction and financial investment, in partnership with Bahamian management, has earned for this government’s 49 per cent, twice as much as government earned for itself when it owned 100 per cent of BTC. So how can the Christie government better this so that each Bahamian can experience the benefits?

As a humble Grants Town construction worker sits to his table, his family around him, and bows his head to give thanks for the food before him, how will BTC’s 51 per cent personally benefit him? He, however, would certainly feel a severe bite in his pocket, resulting in less on his table to be thankful for if government’s fight over these shares results in investors abandoning this country and construction sites closing down.

We believe the only ones interested in this 51 per cent are unionists and others who might see some personal benefit for themselves. However, as far as the populace is concerned there are far more pressing matters on their minds than who is sitting at head office in BTC.

The Ingraham government has for a long time tried to find a buyer for 49 per cent of BTC. In fact this sale was one of its 1997 planks in its election platform. But as times changed with BTC being picked off by some of its own employees, and equipment becoming obsolete it was obvious that if something were not done soon, there would be nothing left of value for government to sell. As it was the market had become so sophisticated that a government-owned BTC could have never competed. The market had changed and the buyer — not the seller — called the tune.

With BTC’s mobile monopoly — the only section keeping it afloat — expiring in 2014, BTC needed a powerful ally to fend off the approaching predators. Although there were offers over the 13-year period, no company qualified. Nor was any company prepared to take the risk and expend any money with government being the major player.

The only way to off-load BTC to a company that would prepare it for serious competition was to recognise that the new company had to have full control— there was no other way. Come 2014, with serious competition and the loss of the only monopoly keeping BTC in the market about to be lost, BTC without a strong partner was headed for the boneyard. And so, the Ingraham government sold it, with the intention of the Bahamian people eventually, through ownership of shares, having real participation in their own company.

The Christie government sees it otherwise, claiming that although it also intended to find a buyer for BTC, it would only have sold 49 per cent — mind you all kinds of concessions were to be thrown in to sweeten the pot. Under the Ingraham sale there were no sweeteners for C&W.

For some reason — and we’re getting no reasons that make sense — the Christie government acts as though it’s impossible to take the next breath without 51 per cent of BTC in its pocket.

If it keeps up these antics — and foolish talk by persons like Frankie Wilson, who despite the “political risks,” is prepared to go ahead with negotiations — BTC might end up like the dog in Aesop’s fable who drops his real bone as he snatches for the reflection of that bone in the water.

No sensible business person can see Cable & Wireless— as Swires couldn’t see 42 years ago in the case of Bahamas Airways — accepting minority ownership in BTC.

Columnist Larry Smith gave some very good advice in his Tribune column recently. Wrote Mr Smith:

“In the final analysis, this is all such a monumental waste of time, effort, resources and political capital. Instead of trying to turn the clock back to make a prehistoric political point, this government should be focusing on the future, spurring the economic recovery and finding ways to control our deficits and debt that are rising to dangerous levels.”