Belmopan, Belize 22 March 2009 - The Belize Government has officially announced that it does not intend to to honor the BZ$ 77 million dollar awarded by the London Court of International Arbitration this week in its dispute with Belize Telemedia Ltd. The decision by the Belize government has raised serious concern among investors who have for some time now been worried about the validity of contracts and legal certainty in this former British colony located in Central America.Asked by Channel 5 reporter Jose
Sanchez whom the LCIA award of $77 million will benefit, BTL's
executive chairman, Dean Boyce, said it is the charities and the BTL
employees trust that own 95% of BTL and the 800 Belizean shareholders
who own the remaining 5%.
According to Telemedia, a significant part of the Award relates to the treatment of taxes, but additionally includes the recovery of legal costs and other outstanding Government debts. The release further states that in many ways it is very much business as usual, and Telemedia will continue as before on the basis that the Accommodation Agreement is fully in place.
According to Telemedia, a significant part of the Award relates to the treatment of taxes, but additionally includes the recovery of legal costs and other outstanding Government debts. The release further states that in many ways it is very much business as usual, and Telemedia will continue as before on the basis that the Accommodation Agreement is fully in place.
In an interview with the Amandala newpaper today, Prime Minisnter Dean Barrow said that "..this a paper award" that does not sway him in the least". The P.M. added that :"The fight now begins at home," Barrow told us,
indicating that even though the LCIA has ruled in BTL's favor, BTL
would have to go to the Supreme Court of Belize if it wants to enforce
the ruling."
The dispute arose over an accommodation agreement where Belize Telemedia Ltd. - the country's largest telecommunications company - agreed to expand investment in a country with less than 300,000 inhabitants in exchange for tax concessions.
The dispute arose over an accommodation agreement where Belize Telemedia Ltd. - the country's largest telecommunications company - agreed to expand investment in a country with less than 300,000 inhabitants in exchange for tax concessions.
Leave a comment