From:TheBahamasWeekly.com
The government did put Bahamians first in new BTC deal
By Elcott Coleby
Jan 28, 2014 - 12:04:41 PM
Dear Editor,
The achievement of the government on behalf of the Bahamian people in the renegotiated BTC deal is clear and quantifiable.
It was recently reported in the media that based on BTC’s capitalization, 2% of its shares had a market value of $8.2 million on the 6th April 2011. Those same shares are valued as much as $50 million today according to media reports. The Prime Minister confirmed that these shares will attract dividends in the low seven figures payable to the Bahamian people in the form of sports development, the fight against crime and access to better technology. These 5,093,000 shares acquired at no cost to the Bahamian tax payer represent the 800 pound Gorilla in the room and the critics of the government are in collective denial about this fact.
The Prime Minister and his government secured this acquisition without costing the Bahamian people one penny; without injury to the international reputation of The Bahamas as an investment destination and without adversely impacting the share market value of CWC internationally. This was a monumental achievement by the Prime Minister by any yardstick and required extraordinary leadership and diplomacy. We are fortunate to have the Rt. Hon. Perry G. Christie as our Prime Minister, given his extraordinary negotiating skills, his world view and his grasp of the principle of “moral suasion,” a vitally important attribute of any national leader.
In listening to and reading much of the commentary surrounding this new deal, the critics of the government and this deal were given a disproportionate voice of dissent. Personally, I am jealous of the deal and as such I have a modest proposal for all the critics, gainsayers and naysayers and it involves the 800 pound Gorilla in the room: Attempt to negotiate (at no cost to me) the transfer of assets with a market value of up to $50 million for benefit of my family – assets (5,093,000 shares or an equivalent) that will deliver dividends in the low seven figures annually in perpetuity. If you succeed, you get the satisfaction of talking down the deal by calling it a “deception,” a “betrayal,” “smoke and mirrors,” “a charade,” “a hologram,” “a shame,” “a national embarrassment,” “a pie in the sky,” or any other colourful descriptive language of your choice and to your heart’s content. I get to wink and nod and say “OKAY ALREADY” - then immediately turn my attention to the best management of this asset and cash to the maximum benefit of my family. It’s a win-win deal. The critics have your say and I have my way.
And that should be the government’s next course of action – managing this asset and cash to the full benefit of the Bahamian family. This asset represents $50 million plus a perpetual revenue stream the Bahamian people did not have prior to the renegotiations.
The government should also turn its attention to ensuring that the majority Bahamian board of directors in an expanded BTC board and the Senior Policy Advisor – all renegotiated into the new deal - consistently approve telecommunications policies that reflect the collective will, desires, aspirations and sensibilities of the Bahamian people. That is the government’s next mandate in this unfinished process.
In the end, public policy must always be about improving the lot of the Bahamian people. This renegotiated deal improves on the original 2011 deal, improves the lot of Bahamians and demonstrates in a material way that the government believes in Bahamians and puts Bahamians first. It is in fact a win-win deal.
Elcott Coleby
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