The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Copyright Royalties Tribunal’s chairman yesterday said the issue of outstanding payments owed to foreign rights holders would “not be outstanding for very much longer”, with Tribune Business obtaining documents showing his predecessor sought to use URCA to “pressure” Cable Bahamas over the issue.

Obie Pindling told Tribune Business that it was “most regrettable” that HBO Latin America had chosen to slam the Bahamas yesterday over the Copyright Licensing Fund’s failure to pay out its $600,000 claim, given that he had sent the pay-TV network’s Bahamian attorney a proposed solution two-three weeks ago.

Suggesting that HBO Latin America would not be making such statements to the US Trade Representative’s Office “if it knew the current state of affairs”, Mr Pindling said he and the other Tribunal members had “done what we needed to do” to resolve the matter.

Agreeing that it was “critically important” that the Fund provided due compensation to rights holders, Mer Pindling added: “Attempts have been made to have the matter dealt with, and we have not exactly received the co-operation of many stakeholders in this entire thing.

“At the end of the day, the matter can’t be avoided. It has to be dealt with. I see no reason why this should be outstanding for very much longer. It will be a non-issue in a matter of time.”

Indicating that the Tribunal had to get approval at a higher government level for any proposed settlement, Mr Pindling indicated such a document had been sent to HBO Latin America’s Bahamian attorney recently.

“This is most regrettable, and quite honestly, I do not understand this as I, very recently sent an e-mail to their local counsel (David Allen) advising him that, as chairman of the Tribunal, I sent a detailed proposal to the Government for resolution of the matters with both HBO and PRS. The proper protocol had to be followed,” he added of the pay-TV network’s comment to the USTR.

Similarly, Ryan Pinder, minister of financial services, yesterday told Tribune Business that HBO was “well aware” of the steps taken by the Government to resolve the issue.

He added that the Attorney General’s Office, the Ministry of Foreign Affairs and his Ministry were working collectively to bring the dispute to a conclusion.

Separately, Tribune Business has also obtained copies of e-mails between Mr Allan and Kirkwood Seymour, Mr Pindling’s predecessor as Tribunal chair, over the HBO Latin America dispute.

The documents note that HBO Latin America is “completely dissatisfied by the delay” in receiving its $600,000 compensation, and reveal the Tribunal’s difficulties in finding an accounting firm to complete an audit of the Fund and determine whether the correct compensation had been paid.

The auditor switched from Ernst & Young to Deloitte & Touche in August 2011, only to change again to Baker Tilly Gomez in January 2012.

And the documents also hint at frustration with Cable Bahamas, and its alleged lack of co-operation with the audit.

For instance, in a July 11, 2012, e-mail as he stepped down from the Tribunal chairmanship, Mr Seymour told Mr Allen: “During the previous week I spoke with Mr [Vincent] Wallace-Whitfield at URCA to see what pressure could be brought to bear on Cable Bahamas. The new Tribunal will be briefed on this as well.”

And, on June 27, 2012, he informed Mr Allen: “Just a note to say that the consultants having not received the information from Cable Bahamas; we are following up with URCA to see if this will produce results.”

Emphasising just how damaging the matter could be for the Bahamas, Mr Allen had warned Mr Seymour on April 20, 2012: “We were informed by a letter dated 26th January, 2012, that Baker Tilly Gomez had been retained to assist with the process.

“We made contact with the persons involved at Baker Tilly Gomez, Ms V.Rahming and Ms Ilzhem Aragundi on numerous occasions. While they have asserted an intention to liaise with Cable Bahamas to obtain information, these meetings do not appear to have occurred. Further, they have not been timely and forthcoming in their correspondence with us.

“We are completely dissatisfied by the delay experienced in this matter. The client is very concerned by the delay and has considered all options, which could have international and national repercussions on the Bahamas’ reputation as a reputable copyright jurisdiction. We would hope you would assist us in progressing this matter on an urgent basis, as time appears to be running out.”