ICC Goes Back To Miami Court After Favourable Appeal Court Ruling

by Amanda Banks, Tax-News.com, London

07 September 2005

Innovative Communication Corporation, the firm at the centre of a legal wrangle with the Belize government over ownership of Belize Telephone Company (BTL), has gone back to the United States District Court in Miami in an attempt to have a ruling in favour of the government overturned.

On August 31, ICC filed a Memorandum of Law in Miami following last month's ruling by the Court of Appeals of Belize, the nation's highest court, restoring Jeffrey Prosser as Chairman of the Board of Directors of the Belize telephone company (BTL). In doing so, the Court of Appeals reversed a decision by a lower court in favour of the Government of Belize.

According to ICC, in reversing three of four declarations in favour of the Government's position last May, the appellate Court effectively nullified all sales of BTL shares made in the last several months to third parties, including companies and affiliates controlled by Lord Michael Ashcroft that would have given these companies and affiliates majority ownership of BTL.

ICC believes that the Miami Court, which found in favour of the Government of Belize, partially relied on the findings of the Belizean lower court.

"The judgment by the Court of Appeals of Belize affirmed that Jeffrey Prosser remains as Chairman of BTL and guarantees that Belize Telecom retains at least one-half of the Board of Directors of the company, and possibly up to 6 of 8 Board members," the company said in a statement.

ICC went on to add that:

"Therefore, all prior sales or transfers of shares of BTL by the Government to third parties since February 9, 2005, have been nullified as a result of the Court of Appeals' Judgment, since a majority of the legally constituted Board of BTL has never approved any such sales or transfers under Belizean law. That means that all prior sales to Lord Ashcroft, related foundations and companies and related parties have been nullified and any share certificates he or they purport to possess or own are equally null and void.

"Because of the Court of Appeals' reversal of the Belizean lower court, we are planning to seek reconsideration of the the decision by Miami U.S. District Court Judge Ungaro-Benages' recent decision, which in part relied on that lower court decision."

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