The Tribune

By KHRISNA VIRGIL kvirgil@tribunemedia.net PLP Senator Frank Smith yesterday accused the Bahamas Telecommunications Company of "financially raping the Bahamian people". Mr Smith made the remarks to members of the Upper Chamber as discussions on the 2012/2013 budget continued. The government is now in talks with Cable and Wireless Communications (CWC), the parent company of BTC over obtaining a majority stake. As it stands BTC is 51 per cent owned by CWC and 49 per cent owned by the government. BTC was acquired by CWC in April 2011 in a hotly debated and contested privatisation exercise. Claiming the previous Ingraham administration sold BTC at a "fire sale price" with the promise of improved service and a decreased cost for consumers, Mr Smith said the Company is now performing at its worst in the country's history. Mr Smith said: "This is the worst the service has ever been for the telecommunications provider in the Bahamas. The former leader, Hubert Alexander Ingraham is on record as having said and I quote: 'If you give BATELCO now BTC to Bahamians, they'll run it in the ground in a month.' "Could you imagine that, a Prime Minister speaking like that about the people he had the privilege to govern? But here is the irony, BTC has been sold to foreigners and the service I couldn't imagine could be as bad as this is. "They are overcharging people and they (are) talking about giving refunds. With dropped calls, they let you stay on the phone for one minute and two seconds, but they bill you for two minutes you call back stay on the phone for 10 seconds they bill you for one minute. It's amazing. They are raping Bahamians. It's all because of them and the lack of confidence in Bahamians." Mr Smith pointed out to Senators that if the government is successful in its negotiation of the majority stake the Bahamas would be better positioned. "There is a huge difference with that two per cent. One gives you control and the other one doesn't. You could control the board appointment you could direct the corporation you (and) could direct the dividend policy," Mr Smith said. However, former State Finance Minister Senator Zhivargo Laing cautioned the newly elected government as it moves forward with negotiations. Mr Laing said: "It's an issue that doesn't involve one party, it's a dance that two people have to do. I don't have to sell, if you want to buy. But the government can expropriate and it can mandatorily acquire something. That sends a huge messages to the community not just the domestic community, but the international community." "That would mean borrowing $550 million in this upcoming fiscal year and adding to that a sum of money. "They are saying that the FNM sold 51 per cent of the shares at fire sale prices. That must therefore mean that those 51 per cent of shares are worth that much more than we sold it for. "The seller is listening to the government say that, so that therefore means that it must be worth more than the $200 million plus that it was sold for which on top of the $550 million must be borrowed because they are structuring the pricing for the prospective seller. "BTC is holding an asset they purchased at a significantly discounted price, according to the PLP, and they now want to go and negotiate with them." The government's statements, Mr Laing said, should be regarded as "foolhardy" in a negotiating environment.