The Tribune

EDITOR, The Tribune.

  During the lead up to the May 7 general elections the then opposition Progressive Liberal Party (PLP) spoke vociferously against the sale of 51 per cent of the Bahamas Telecommunications Company (BTC) to the global telecoms company Cable & Wireless Communications for a reported $210 million. Many PLPs clobbered the then Free National Movement (FNM) government and former prime minister Hubert Ingraham for selling out the country's birthright to foreigners for a pittance. The critics also argued that Cable & Wireless' track record in the Caribbean leaves much to be desired. They are of the view that BTC should remain in the hands of Bahamians.

Listening to the critics back then, I was under the impression that Cable & Wireless would have run BTC down to the ground in its first year of managing the company. But those fears have been proven unwarranted. In fact I read in a Tribune article which says that even with an ownership of just 49 per cent of BTC, the Bahamas government has earned more than it did when it owned the whole company.

Yet even with this good news, the Christie regime is dead set on regaining the majority of BTC. And this despite a $100 million penalty clause that was put in place by the former FNM administration. Prime Minister Perry Christie has already assembled a negotiating team: businessman Frankie Wilson; former BTC CEO Leon Williams; former PLP attorney general Sean McWeeney and attorney Roena Bethel.

Initially, I thought that the Christie administration would have backpedaled on this campaign promise after speaking with BTC CEO Geoff Houston and the other principals of Cable & Wireless. But after announcing to the press that a negotiating team had been assembled to recapture the majority of BTC, it became obvious to me that Christie was dead serious.

Now it remains to be seen what will be the repercussion if the Christie administration goes ahead with its plan. How will the international community view this country after an agreement between its government and a reputable foreign investor has been reneged? While it is true that we are a sovereign, independent nation, we rely heavily on foreign investors in order to put bread on our collective tables. Mega investors such as Sol Kerzner, the principals of Hutchison Whampoa, Bah Mar, Albany and Adam Stewart have all positively impacted the lives of thousands of Bahamians. Without foreign investors The Bahamas would be no different than poverty stricken Haiti. Foreign investors need to know that an agreement signed with one government will be honored by another government. I am afraid that the PLP might end up scaring away foreign investors.

With a reported 15.9 per cent national jobless rate, we can ill afford such a dangerous scenario. If this whole BTC issue blows up in the face of the Christie government, then the prime minister and his party will suffer a severe political backlash in 2017. Perhaps Prime Minister Christie should stand back, take a deep breath and think for a moment, before moving ahead with this potentially dangerous plan. I believe that the prime minister and his administration are stumping on their political coffins with this whole BTC issue.

I understand that several prominent analysts have already expressed alarm at what the government is attempting to do with Cable & Wireless. If the PLP strong-arms Cable & Wireless into handing over the highly coveted two per cent of BTC, I think the foreign telecoms company will pack up its Georgie bundle and leave this country. No foreign telecommunications company would want to be a minority owner of BTC. The PLP government might then be forced to buy the remaining 49 per cent for hundreds of millions of dollars. And where will the government find this money? BTC has been significantly improved since the advent of Cable & Wireless. Millions have been pumped into the company in an effort to bring it up to 21st century telecommunications standard. Obviously the government would have to cough up a significant amount of money in order to buy back BTC. And I am not even considering the $100 million penalty clause.

I cannot understand why Christie is so determined to go after BTC. The prime minister, in my view, has yet to make a convincing argument as to why the Bahamas government should own 51 per cent. It looks like he only wants to be in a position to say to his party supporters in the next election cycle that the PLP has fulfilled its promise in regaining control of BTC. But I don't think that the overwhelming majority of the thousands of PLPs who attended the Gold Rush rallies really understood the explosive potential this situation would have for this entire country. They were just riled up by their PLP candidates. I think they understood that this plan could cause foreign investors to think twice before investing in this country. And when that happens, where will the PLP's promised 30,000 jobs come from? I am for Bahamians, but I think we need to slow down on this anti-foreign rhetoric. We cannot survive without them.

I understand that a referendum on oil drilling might be held in 2013 and one is supposed to be held later this year. Perhaps the PLP should also hold a referendum on BTC. Let the Bahamian people decide if they want their government to own the majority of BTC.

Cable & Wireless has done a good job so far. If the Bahamian people want Cable & Wireless to give up control of BTC, then the blame for a foreign investor backlash could be laid at their collective doorsteps. But if the Christie administration carries out its plan unilaterally, and foreign investors become jittery in investing their millions in this country, then the wrath of the black masses, especially in the inner city communities of Nassau, will fall on the PLP party like dew come 2017. Christie and his administration must tread very, very carefully with this issue.

KEVIN EVANS

Freeport,

Grand Bahama,

September 6, 2012.