Opposition Leader Renews Criticism of BTL-SMART Acquisition Despite Government Pause

The proposed acquisition of Speednet (SMART) by Belize Telemedia Limited (BTL) returned to the political spotlight today after Leader of the Opposition Tracy Panton renewed criticism of the arrangement during a press conference lasting just over an hour and a half.  Although the Government has already announced a pause on the proposed transaction pending further review, Panton argued that serious concerns remain unresolved, particularly the reported 80-million-dollar payout tied to the potential purchase.  She said the public still has not received sufficient justification for the valuation and warned that the country could be moving toward a major restructuring of the telecommunications market without adequate transparency.

Tracy Panton, UDP Leader: “None other than the prime minister of this country, the honorable John Briceño is now requesting a pause, quote unquote, in the transaction, to allow the acquisition process to go to public consultation. We have before us a rushed secret, telecom deal. There is $80 million dollars in exposure if this deal proceeds. $80 million dollars, plus stamp duties, plus the legal fees, plus closing costs, plus most importantly, interest payments. There is no transparency that is well established. There’s no independent valuation or assessments, no clear benefits to consumers. It represents a sea change in public policy with no parliamentary oversight, no word from SSB. No word from the regulators. The PUC at a time, and I know I sound like a scratched record whenever I say this but it is the absolute truth, at a time when the cost of living continues to spiral out of control.”

During the briefing, Panton also claimed the negotiation process itself has been inconsistent, asserting that the details of the agreement have shifted over time, raising additional red flags for the Opposition.

Tracy Panton, UDP Leader: “What continues to be of great concern to the United Democratic Party and to our relations is the shifting of terms in this transaction. The goalpost, as we say, keeps moving. First, we were told $10 million down, $7 million over four and a half years with interest. Now it is zero down. Make it make sense. First, it was described as a fire sale in the interest of emerging competition. Now it is being branded simply as a shared transfer between two corporate entities. First, we were told that there would be no rate increases for one year. Now we are being told that they will put in place a three-year safeguard with no clarity on how these changes will affect the proposed payment schedule, how these changes will affect payments of interest and how these changes would affect the business model that is being shopped around to anyone who cares to listen.”

Panton called for full disclosure of the structure, financing arrangements, and regulatory safeguards before any further movement on the acquisition.