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Oct 15, 2010

P.M. says previous board of directors should pay U.S. $22.5 Million loan

Earlier in the newscast, we told you about the press conference on Telemedia’s shares.  After the nationalization of Telemedia, former Telemedia Chairman Dean Boyce put the value of the company in excess of three hundred million U.S. dollars.  That’s a hefty sum that still looms over the cash strapped government. The compensation as well as  a loan of US twenty two point million from the British Caribbean Bank that the government nationalized also came up at this morning’s press conference. When asked as to who will pay the loan, the Prime Minister’s view was incredulous, he said it would be the previous board of directors.

Jose Sanchez

“In regards to the twenty-two point five million dollars loan, the offer says that money is void. How is that void when money was borrowed from one bank and paid for shares?”

Dean Barrow

Dean barrow

“Because it was a loan for an improper purpose and the argument is that the board of directors at the time and the bank must be presumed to have known. So that is the legal position of Telemedia and of the government of Belize.”

Jose Sanchez

“Who is responsible for repayment?”

Dean Barrow

“In our view the board of directors of the time. But I stress that from government’s point of view, we recognize that it is still at this juncture, still a liability we must contemplate as such. We will argue that no compensation is due because it is an illegal loan. But unless and until the court makes that declaration, that is only a position that the government is taken.”

Jose Sanchez

“I believe that money was used to purchase shares from RBTT, some of which was used to procure shares for the P.S.U. species?”

Dean Barrow

“The unions I believe got some shares as a consequence. We explained to them that their shares are intact.  There is no question of going after their shares. And the other shares that had been given to other persons were acquired by the government and compensation must be paid. It’s not about the shares and paying compensation for the shares. It’s about the re-pay ability of the loan. So I think the distinction must be made between the loan and the shares.”

Jose Sanchez

“And the three hundred million dollars that the Ashcroft group is saying is the value of the company that it would want to see returned? Is the value you assessed the company at, and how soon should we see the payment?”

Dean Barrow

“Absolutely not the value that we place on the company at the time of acquisition. Which we see as the trigger point for the compensation. But clearly there will always be this great divide between what we   see as the true value or the former owners of the shares would see as the true value.  It’s a matter again that the court will have to determine. We will make an effort, we will say to the owners at some point in the very near future, this is what we’re prepared to offer. We know in terms of what we’ve heard from them as the kind of figure they are banding about but there will be no agreement and ultimately  then we are satisfied that the court will have to come up with a true compensation figure.”


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

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3 Responses for “P.M. says previous board of directors should pay U.S. $22.5 Million loan”

  1. Common Sense says:

    Is our gracious dictator (now feel the urge to use words similar to the North Koreans) destined to bring ruin to OUR Jewel at the behest of a greater power…..Can our gracious dictator really be this dumb? Is our gracious dictator really ignorant of the fact that he will bring revolution to this country very soon if he continues on his path – not one international country will recognize Belize if we continue, and with international arbitration soon upon us concerning this Guatemala issue….

  2. anonymous says:

    THE PM NEEDS TO RESIGN,..BZE DOESNT NEED ANY LAWYER AS PM OR AS POLITICIANS…THEIR DUTY IS TO LIE~!!!!!…YOU NEVER HEAR THEM SAYIN “I WILL”…BUT Instead they say “I BELIEVE”…ETC…IN D CASE OF THE SHARES…HE SAID..BELIZEANS WILL BENEFIT FROM D SHARE…BUT DID HE SAY WHICH BELIZEANS>?…NOOOOOOOOOOOOO!!!..AND ITS PPL LIK HIMSELF THAT THIS WILL BENEFIT NOT THE POOR BELIZEANS..YES IT WILL BE $4 PER SHARE BT WHATS D MINIMUM AMT OF SHARE THAT WE CAN PURCHASE?…WAKE UP BELIZEANS THEIR SMART IN THEIR WORDINGS AND ITS UP TO US TO COMPREHEND!!!

  3. sunshine says:

    Listen you talkers, I believe that Oliver Dean Barrow is doing his best for us Belizeans, Saving us from the hands of thy lions, who are ready to devour. Now as yourself why can’t you be the next Prime Minister if you have the to do better. It is because you are in the wrong shoe. Open you eyes and taste Belize. We love our Prime Minister, he is wonderful.

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