The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The head of the Government’s negotiating team yesterday “categorically” denied that they agreed “a quid pro quo” that would see hundreds of Bahamas Telecommunications Company (BTC) jobs outsourced in return for regaining majority control.

Franklyn Wilson told Tribune Business that the possibility of outsourcing BTC’s IT and call centre functions, and the return of Leon Williams as the company’s chief executive, were “never, ever discussed” with Cable & Wireless Communications (CWC) during talks that saw the latter agree to transfer almost 2 per cent of its equity stake into a non-profit foundation.

Responding to Free National Movement (FNM) allegations that there was much more to the deal between the Government and CWC than has been disclosed, Mr Wilson accused the Opposition, and its deputy leader in particular, of hypocrisy.

He described Loretta Butler-Turner’s “abhorrence” at the thought of further BTC job losses as “remarkably strange”, given that she was part of the Ingraham Cabinet that approved the 2011 privatisation, which resulted in several hundred employees leave as part of a Voluntary Separation Programme (VSEP).

And the Arawak Homes chairman argued that the former administration had given its “consent” for further BTC staff reductions, alleging that it had failed to table agreements disclosing this in Parliament at the time of the privatisation.

Mr Wilson, meanwhile, confirmed that while CWC had agreed to a majority of BTC directors being Bahamians, the company would still have the right to appoint four and retain majority Board control.

“Let me categorically say to you that at no time was there any discussion between CWC and our committee that, in return for the various gains that the country received, there would be a need to agree to the outsourcing the FNM is talking about,” Mr Wilson told Tribune Business.

“Never, ever was that discussed; never, ever was that agreed. At no time was there a discussion about Leon Williams becoming chief executive. That was never, ever discussed; never, ever agreed.”

Mrs Butler-Turner and FNM chairman, Darron Cash, yesterday alleged that as part of the deal for CWC to relinquish majority equity interest, BTC’s IT and call centre functions would be outsourced to Florida and Central America, respectively.

They added that BTC was also negotiating a deal with global communications equipment manufacturer, Ericsson, for it to take over maintenance of the company’s outside plant and infrastructure - just as it has done in other CWC Caribbean territories.

BTC spokesmen were tight-lipped on the claims, declining to comment, but they did not deny them. And well-placed insiders told Tribune Business “there is a lot of truth” in them, including Mr Williams’s possible return as chief executive.

Tribune Business understands that BTC’s phone lines heated up over the weekend, as alarmed insiders with knowledge of the proposed manoeverings spread the word in a bid to derail the plans.

However, it would effectively be ‘political suicide’ for the Government to agree to any BTC outsourcing that would cost significant numbers of Bahamian jobs, especially as it would have the power to stop it.

CWC’s undertakings, under the 2011 privatisation agreement, requires that 
“the day-to-day administration, operation and management of [BTC] shall be substantially conducted from premises in the Bahamas”.

This appears to be an obstacle to any outsourcing, and the shareholders’ agreement between the Government and CWC requires the former to approve any ‘material change in the nature or scope” of BTC’s business.

Also under the Government’s ‘reserved powers’ is the need for it to approve BTC’s “principal place of business” or “a material part of its undertaking, property and/or assets” overseas. Yet another outsourcing block.

And CWC’s 2011 privatisation business plan also promised that “a high value consumer call centre” will be based in the Bahamas, directly contradicting the FNM’s recent assertions.

The CWC plan, though, did commit the company to consolidating finance and human resources functions into Caribbean service centres, while marketing and development; network planning services; customer operations; and other services would be integrated into its regional operations.

Brushing aside the FNM claims, Mr Wilson said the only other issue discussed by his committee, and which CWC agreed to, was that a majority of BTC Board directors would be Bahamians.

“That to me is huge. That is the only significant thing that has happened,” he added. “In my opinion, the people of the Bahamas own a 51 per cent economic interest, and citizens of the Bahamas control a majority of the Board of Directors.”

CWC will have the right to appoint a majority four directors, including one Bahamian, with the Government still appointing three.

Mr Wilson said it was this change that was holding up the signing of a definitive agreement between the Government and CWC, as the attorneys had not included it in the initial draft.

“It is simply not true that this was a quid pro quo,” he told Tribune Business of the ‘2 per cent’ agreement. “It was never part of the agreement. If they [CWC] outsource, it has nothing to do with our negotiations.

“The point I am saying categorically is that at no time was that a position in the context of the negotiations of our committee. It was never part of a quid pro quo. Whatever they do is up to them.”

Mr Wilson also denied to Tribune Business that there were any ‘side agreements’ between CWC and the Government, amid increasing calls yesterday for the Government to eliminate all speculation by publishing full details of the deal.

Taking aim at Mrs Butler-Turner, Mr Wilson said she and Opposition leader, Dr Hubert Minnis, were members of the Cabinet that approved a privatisation deal that allowed CWC to “do what they want”.

“The agreement is what it is,” Mr Wilson told Tribune Business. “When they [CWC] bought it, they had the consent of the Government of the Bahamas to significantly downsize the company.

“Nothing we have done has provided them with any more rights than they had when they bought it.”

He alleged that the Ingraham administration never tabled in Parliament documents showing that CWC would be allowed to further reduce BTC staffing levels after the 2012 general election.

“If that’s not hypocrisy, tell me what is,” said Mr Wilson.