Legal Wrangle Over Belize Telecom Ownership Draws To A Close

by Leroy Baker, Tax-News.com, New York

27 June 2005

The trial involving US-based telecommunications firm Innovative Communications Company and the government of Belize concerning the latter's apparently illegal seizure of the former state-run telecommunications provider, BTL has concluded in Miami.

After hearing final testimony from attorneys acting for both parties, Federal Judge Ursula Ungaro-Benages has asked for written findings to be submitted by July 1, soon after which a judgment is expected.

In February, the Belizean government seized back control of BTL from ICC, which had been invited by the government to take over BTL and modernize Belize's telecommunications.

ICC claims to have invested more than US$60 million in BTL, whilst a further US$15 million has already been spent on improving telecommunications services throughout the country. The Government, however, claims that ICC has failed to pay more then US$57 million due to it under the sale agreement.

ICC is seeking a court order to restore its six directors to the BTL board, return John Vondras to the post of managing director, register its twenty-four million newly created 'C' shares, deliver a US$15 million debt instrument from the INTELCO acquisition, and have the government of Belize pay monetary damages of US$24 million.

The controversy over BTL's ownership has had a very unsettling effect on the country as a whole, and has led to demands from BTL's workers, the teachers union, university students, the National Trade Union Congress of Belize and the United Democratic Party, the opposition party, for Prime Minister Said Musa's resignation, alongside that of his government.

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