The Tribune

By NEIL HARTNELL Tribune Business Editor BAHAMIAN businesses yesterday expressed concern that the Bahamas Telecommunications Company (BTC) was extending the period for paying them to 60 days, as the newly-privatised carrier moves to tackle "inconsistencies" in its dealings with good and services suppliers. David Kelham, BTC's chief financial officer, in a November 16, 2011, letter obtained by Tribune Business, said that following Cable & Wireless Communications (CWC) purchase of a 51 per cent stake in the incumbent telecoms carrier, a number of processes had been reviewed. This, he added, had uncovered a "lack of formal requirements" for BTC to issue its Bahamas-based goods and services suppliers with purchase orders. "In the vital area of supply of goods and services to BTC, we have found inconsistencies in arrangements and a lack of formal requirements for BTC to issue Purchase Orders (PO's) to suppliers for all goods and services delivered to the company," Mr Kelham wrote. "We believe by introducing this process, we will help both ourselves and our suppliers streamline the overall procurement process and ensure we receive the services we order and suppliers get paid according to agreed terms." Under the new policy outlined by Mr Kelham, BTC will have to issue a purchase order before suppliers commit goods and services, and the order should show the expected delivery date. He added that any invoice received that did not quote the BTC purchase order number would not be paid. However, it was the details that have concerned many Bahamian businesses, particularly the move to a 60-day payables period - the time that BTC will take to pay for goods and services rendered. One well-known Bahamian business community source, requesting anonymity, told Tribune Business that some BTC vendors were on 15-day payables periods, and going to 60 days would hurt their cash flow and cause other financial problems. Suggesting that this policy was even being applied to cleaning companies and ladies who performed such work at far-flung BTC offices, the source said: "Obviously, that is not on. BTC is a multi-million dollar company and talking about all these profits. How do they expect these small businesses to carry 60 days' worth of payables? They just can't." Another source said in an e-mail to Tribune Business: "Have you seen this letter from the 'New' BTC? They are demanding 60 days on their payables." In response, Marlon Johnson, BTC's spokesman, confirmed in an e-mail to Tribune Business that the carrier was upgrading its procurement processes by installing a "more robust" system. He added, though, that BTC was committed to honouring existing contracts and arrangements, and was open to payment schedules that matched vendor requirements. "As part of the company's effort to update its procedures and processes to bring them in line with leading industry practice, BTC has established a more robust procurement and payment system, requiring that all goods and services be facilitated under cover of an official company purchase order (PO)," Mr Johnson said. "BTC has, however, committed to honouring pre-existing arrangements with suppliers, and the company does permit qualifying companies to establish terms that match up with the nature of the work and the scope of the supplier operations. "As such, BTC does work with individual suppliers to ensure that no supplier doing business with BTC is unfairly disadvantaged by virtue of doing work with BTC. BTC will continue to review its policies and engage its suppliers on this and others matters time." He added: "BTC is proud of the relationships it has cultivated over the years with scores of small Bahamian businesses throughout the entire Bahamas. These relationships have been mutually beneficial to BTC and its suppliers. BTC will maintain and deepen these links with small businesses in the Bahamian community over time."