Undoubtedly last week’s move by Prime Minister Barrow’s to orchestrate a hostile takeover of Belize Telemedia was a bold one and one that many people support. Belizeans for different reasons wanted to get control over BTL. That was the cry from the unions and many Belizeans as far back as 2005.

Now that the euphoria is wearing off, the reality is setting in like a bad hangover. In the National Assembly the Prime Minister was very clear - he was nationalizing BTL for the Belizean people and to bring to a halt the endless litigation between Government at BTL.

Of course by the time he met the media he had already started changing his tune. He said that he would be looking for “strategic investors” to come in and make this deal possible but he added that he will ensure that Belizeans “control at least 51% of the company”.  When he was challenged on whether a strategic investor would come in, invest tens of millions and still have no control, he quickly conceded that point and said that he would review that position in the future.

About 24 hours later Belizeans got another shock when they saw the composition of the board – his son, his first wife, cronies and employees of the Prime Minister without exception.  And to make matters much worse, we find out that the son of the Prime Minister, a young man with very little business experience was also appointed to a leadership role on BTL’s board. The Prime Minister’s lame response to the criticism was that “his son was his eyes and ears” imputing that he did not trust the members of the board including the former Prime Minister the Rt. Honorable Esquivel and his ex-wife Ms. Lois Young who was also appointed a member of the board. So what about representation from the private sector or the employees or unions? Is the Prime Minister saying that they can’t be trusted?  How about heads will roll at Karl Heusner?  Babies are still dying in our health system and not a single person has been made accountable.

Then there was the promise of cheaper rates! The Prime Minister has now suddenly realized, after the takeover, that he needs to protect the value of BTL because should BTL lose value, we the tax-papers will have to pay the difference.  And then there’s the much hyped VOIP. He promised that he would open up the airwaves and allow VOIP, which would make the cost of phone calls a lot cheaper. This week on KREM radio he was forced to admit that BTL could not afford to make VOIP available to the public because it would lessen the value of the company.   Are you starting to see a pattern here?  Remember when he promised to reduce fuel tax if the cost of fuel reached $7. a gallon, and then came back and said $8?

Which leads us to the bigger problem - the International Monetary Fund (IMF).  Earlier this year, the People’s United Party held a press conference to alert the nation to the impending financial crisis. We explained that our major industries are in serious decline. We pointed out that between sugar, citrus, shrimp and tourism, revenues would decline by approximately $200 million. Yet we still haven’t seen a coherent plan that will pull us through this crisis.

The private sector has also being sounding the alarm. The business climate is not good. Consumer spending has slowed down considerable. At the Commercial Free Zone businesses are closing down. A year ago there were approximately 200 businesses. Today with business down by 50%, there are less than 125 establishments left.

This slowdown had also affected government’s revenue. GST revenues are down anywhere between 12% to 20%. As consumption slows down, import duties are less. The latest estimates show that duties have reduced by approximately 30%.

In the region we hear of many of the Caribbean Islands already going to the IMF. Barbados, St. Vincent and the Grenadines, St. Lucia and St. Kitts and Nevis have all applied to draw down from their reserves. Jamaica is in even more problems and they have applied for a $1.2 billion loan from the IMF.

Unfortunately our Prime Minister is running out of options. At the last IMF visit, the Prime Minister was advised to raise GST by another 4%. He refused. Luckily, Taiwan and Trinidad and Tobago came to the rescue with grants and loans.

This year Belize does not have that option and the IMF is waiting. Many economists are predicting that by the start of the next budget year, the Prime Minister will be forced to go to the IMF for emergency funds. Regrettably the IMF’s medicine is a bitter one - raise taxes and retrench the public service. And while Mr. Barrow continues to bask in his glory, the Belizean people will have to drink the IMF’s bitter medicine.

Or he could do as he begun to imply on KREM when he said that default may be in the offing. 

Are you beginning to truly feel the possibilities?

Be first to comment this article

Write Comment
Please keep the topic of messages relevant to the subject of the article. Personal verbal attacks will be deleted. Please don't use comments to plug your web site. Such material will be removed. Just ensure to *Refresh* your browser for a new security code to be displayed prior to clicking on the 'Send' button. Keep in mind that the above process only applies if you simply entered the wrong security code.
Name:
E-mail
Title:
Comment:
Code:*
	I wish to be contacted by email regarding additional comments