BCCI Raises Alarm Over Possible BTL–SMART Acquisition 

Is BTL moving to acquire SMART?  It is the burning question that has been circling the news cycles for some time now.  Today, the Belize Chamber of Commerce and Industry (BCCI) took a stand to caution the government on the possible ramifications if the sale goes through.  The chamber hosted a press briefing in which it outlined its concerns and preliminary findings regarding reports that Belize Telemedia Limited (BTL) may be in talks to acquire Speednet – SMART.  Acting President Giacomo Sanchez led the discussion, telling reporters that based on information circulating publicly, the figures being mentioned for a potential acquisition are in excess of 150 million dollars. Sanchez cautioned that such a transaction, if carried out without transparency and proper safeguards, could have serious implications for both the national economy and Belize’s telecommunications sector.  Sanchez stressed that the Chamber’s analysis is being conducted in the absence of official information from the Government or BTL, noting that repeated attempts to obtain details on the negotiations have so far been unsuccessful.

Gacomo Sanchez, BCCI Vice President: “Were saying to the government, at least put the proper safeguards in place, whereby we are ensuring that we don’t have issues with unfair competition, impact on the consumer, you know that we don’t go back to the earlier days of BTL when there were issues having to do with monopolistic type behavior and impact on pricing. I think what we’re pointing to is that we would want to see the change in legislation occur prior to a transaction like this going through because once it goes through there will be no inclination or any pressure on anybody to do anything about the current structure within which everyone is operating in the telecom industry. Because of the layering of secrecy behind this entire transaction all we can do is to react and try to react as early as possible to give the public some sense of what’s coming. The response to the Chamber has been unequivocal and consistent with what media reports have indicated so far. It’s pretty much you would be operating in the dark but Given that the BTL is not a new animal within its own sector, we have a lot of background information and we can point forward to where we are in terms of some of the potential issues or challenges that could be faced.”

In the 25-minute press brief, Sanchez explained that the lack of disclosure makes it difficult to determine whether the proposed deal represents fair value or whether public funds, particularly those linked to BTL’s shareholders, could be exposed without proper oversight. These concerns were echoed in a press release issued by the Chamber earlier in the day, which calls for full transparency, independent valuation, and public consultation before any consolidation is considered   Sanchez also warned that the acquisition could reverse years of progress made since the introduction of competition in the telecommunications market, effectively moving the country back toward monopoly conditions that existed before SMART entered the sector.  Perhaps one of the most interesting remarks had to do with what deems to be a conflict of interest.  Here is how Sanchez explained it.

Gacomo Sanchez, BCCI Vice President: “The perceived conflict of interest makes reference here to publicly reported ownership links between Speednet and politically exposed persons create an unacceptable appearance of conflict, undermining trust in the process and raising legitimate questions about whether the transaction serves the public good or private interests. So I think we can say to the extent that with what we’ve heard in the news in terms of questions directly to the prime minister, the familial connection and ultimately the Prime Minister has direct oversight over an entity such as BTL. So any, fundamentally any, and he’s the leader of government of course. So any approval that proceeds then necessarily that is where the potential conflict arises.”

Another major concern raised at the briefing is that the Government may be able to proceed with the transaction without introducing new legislation or seeking parliamentary approval, due to existing legal gaps in competition and merger control.  In its statement, the BCCI is urging the Government to pause any definitive steps and instead prioritize the passage of comprehensive competition and merger control laws, similar to those in other CARICOM countries.

Gacomo Sanchez, BCCI Vice President: “If you examine how our system is structured there’s nothing preventing in this instance the buyer and seller from engaging and proceeding with this transaction. At least what we’re doing from a Chamber standpoint is putting on record some of what the implications of what we see coming should certain actions not be taken. So I mean that’s a short answer to that question.”

Reporter: “So then based on that response we would not see any legislation at all? 

Gacomo Sanchez, BCCI Vice President: “We can only be hopeful.”

The Chamber maintains that only after such legal framework and safeguards are in place should any acquisition of this magnitude be considered, in order to protect consumers, businesses, and public resources.  The Chamber says it remains ready to engage constructively with the Government and other stakeholders but insists that transparency and the national interest must come first.