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Last night was Telemedia’s third Annual General Meeting – but the style of the event was more in line with the tradition of the original BTL, Belize Telecommunications Limited. And probably right that it was as this new Government-appointed board of directors has been determined to distance and differentiate itself from its predecessors. They did so by declaring a modest dividend payout; now the last board declared a huge dividend - twice the company’s profit – except the small shareholders never actually got those dividends – as the payments were invariably tied up in some truncated transaction. But this time, they actually got a check for 19 cents per share. We found out more at the meeting.

Jules Vasquez Reporting,
It was a lush corporate setting, but only about 100 of the company’s 900 shareholders showed up for the annual general meeting. Far from overwhelming, but Chairman Net Vasquez said that by this time next year – there should be some new small shareholders.

Net Vasquez, BTL Chairman
“The intention of the government of Belize as I understand is to offer shares to the Belizean public. The timeline for this will depend on how the Board of Directors can complete the necessary restructuring of the company and associated issues. Hopefully and we need to be cautious about saying this, the prospectus for the public offering should be ready for the second part of 2010. This means that Belizeans will once again have an opportunity to invest in a company that is on sound footing and positioned to meet and overcome future challenges.”

And while BTL can now boast about the future – the Chairman says they found a company in that had been bled into corporate anemia.

Net Vasquez,
“I can tell you that when the new board took over on the evening of 25th August 2009 the cash position of the company was dangerously low and the company’s financials reflected a company burdened with debt. This was so because the former owners had been bleeding the company for several years. For two successive years, just prior to the acquisition, the former owners declared a dividend of $68 million for the 2007 and paid another $70 million of dividend in November 2008. They did this because they were the beneficiaries of 94.5% of the shares and in fact when the $70 million was declared it was not the shareholders that got the dividend, it was the Belize Bank that received the money. What the shareholders received was a loan note informing them that the Belize Bank owed them the money that was declared as dividend. To me these transactions were designed to break the financial strength of the great BTL.”

And while BTL wobbled, the Chairman says they bounced back – first off by taking away their competitors customers.

Net Vasquez,
“We’re pleased to report that our ‘make the switch’ campaign has been a tremendous success. Since its launch in October 2009, our figures show that we have captured at least 20% of our competitor’s market share.”

And that contributed to what the Chairman characterized as increased earnings – enough to pay a dividend.

Net Vasquez,
“We will be paying a dividend this year, despite the fact that the company is a little strained for cash, but we’re doing well. Since the takeover our cash flow has increased and it is for that reason that the board will be paying 19 cents per share.”

That breaks down to a 45% of the company’s profits of $19.8 million,

• 19 cents per share for the 49 million shares totalling $8.9 million.
• $494,000 of that to be divvied up amongst the small share holders
• and the other 8 plus million to the single majority share holder, the Government of Belize.

One small shareholder who’s been raising hell – it seems – since the private BTL was established is Oscar v. Ramirez, a tireless scrutinizer of his company’s affairs. He wanted to know what happened with the ten million BTL spent on Channel 5.

Oscar Ramirez, BTL Shareholder
“There seems to be no record to back up what was done in terms of the TV channel, the building that they bought at West Landivar. So if there is no record to prove that these things were legal transactions, are the Directors prepared to take this thing to the court to reclaim these things because if there is no legal transaction then it is null and void.”

Net Vasquez,
“The Board has given a lot of thought to this issue and we do intend to take it to court. We are putting together other items that would need to take several points that we have found improper and take it all to court in one case. There are several aspects of it that must be looked at. I will give you two examples: we know for a fact that it was Telemedia’s check that paid for that building on Coney Drive. We have the check.”

They have the check but someone else has the assets – and there were also questions about that dubious Sunshine Employees Trust.

Oscar Ramirez,
“We want to find out whether indeed there was the employee’s trust.”

Net Vasquez,
“I have never believed that there was ever truly a trust that was constituted for the benefit of the employees. So therefore I have never believed there has been an employees’ trust. There was such a name but there were two trustees, Keith Arnold, the former Chairman and Dean Boyce, the former Chairman of the Executive Committee of Telemedia. They have been using that name employees trust and I believe they have been misleading our employees all along.”

But the Chairman says what the Prime Minister said – that the shares will now go into a genuine employees managed trust.

Net Vasquez,
“I believe that he truly would like to see employees own those millions of shares that are presently acquired from Sunshine Holdings, they will eventually belong to the employees.”

Shareholder,
“What you’re saying is that you are going to ensure that Sunshine Holdings which they have in the name of the employees are truly for the employees?”

Net Vasquez,
“Well I am glad you said that because I would like to see that as well.”

To wrap up the business of the meeting which took just under two hours, the Board of Directors which had been appointed by Statutory Instrument in August was properly elected.

The meeting was held against the wishes of the Sunshine Trustee Dean Boyce who asked the Supreme Court for an injunction –stating in an affidavit that irreparable damage would be done to the Trust. The injunction was refused by Justice Legall.