7 News Belize

Citrus Stakeholders Meet: Can’t We All Get Along?
posted (February 18, 2014)
Last night, we showed you the press conference that the Prime Minister hosted to explain how his government intends to bail out the crisis torn Citrus Industry.

Majority Shareholder the Citrus Growers Association has been at odds with Barbadian Beverage Giant, Banks Holding Limited, which is a minority shareholder - but one with a powerful veto vote over board decisions.

The CGA, which represents 90% of citrus farmers, has repeatedly criticized Banks for using its veto power to stall board decisions for years. CGA wants to buy out Banks - but that's an expensive dream - as much as 20 million US dollars, and government has said it won't use public funds for a private buyout. But it will front about 15 million dollars to bridge the Citrus products of Belize Limited through a cash flow and debt crisis which has immobilized the industry.

The road map was hammered out by the Prime Minister yesterday before he left the country and today in Belmopan, Deputy Prime Minister Gaspar Vega met with all stakeholders to ensure they agree to a way forward. The meeting included Anthony King, the Board Chairman of Banks Holdings Limited. He sat with all other stakeholders in the cabinet room today for almost 6 hours, and when they exited, 7News was there. Here's what the Banks Holdings Chairman had to say to the media about the controversy his company continues to find itself in:

Anthony King - Board Chairman, Banks Holdings Limited
"We've had a meeting to get a resolution to move forward and I think we've achieved that. So, I think everyone is quite content that we found a way forward, certainly Banks Holding is and the meeting also had to engage in discussion regarding some working capital support and financing for the company, so the time we spent in the meeting wasn't all about matters between the CGA and ourselves, it was also about the company and I think we appeared to have satisfactory resolve the interim financing as well."

Hon. Gaspar Vega - Minister of Natural Resources and Agriculture
"We've made some changes. An MOU is being prepared and it should be finalize tomorrow but all parties agreed so far to the MOU that is being prepared where we are going to be having some changes on the structure on the board of directors. We are getting 2 members from CGA, 2 from BHL, 1 from Social Security Board, 1 one Heritage Bank and 1 from GOB. Everything went well; I believe that it is the beginning for prosperity in that industry. We had to come up with 4 million dollars unsecured loans for CPBL so that the small farmers can be paid for their fruits that it's being owed presently."

Daniel Ortiz
"We notice that an issue has always been where CGA says that Banks Holdings uses its veto power to keep them stalled. Do you guys plan to continue in a stalemate with an important partner such as CGA?"

Anthony King - Board Chairman, Banks Holdings Limited
"Well I don't believe that we have ever use that certainly for the impediment of the company or in the interest of the company. We have had this agreement on a couple of issues but under the new arrangements there is another board and I think that the arrangements we have agreed upon on the structure, the board is very likely to not present that as a problem or a need for us to use going forward."

William Henry Bowman - Executive Director, Belize Citrus Mutual
"Most of the items that were put on the table have been discuss and agreed to. What is sticking right now is some minor legalities where one is suing, the next one is counter suing and we are trying to see if we can get them to drop both cases and move forward peacefully. And this is what they need to do because Banks is most willing, CGA is holding out a little bit strong on the dropping of the case at this moment."

Mike Rudon, reporter Ch 5
"Which case is that sir? Could you refresh your memory?"

William Henry Bowman
"This is to do with the investment agreement where CGA is trying to get certain changes in that and that is still on the table."

Daniel Ortiz
"Is that where BHL has veto power sir?"

William Henry Bowman
"Yes BHL has veto power, but you know you must understand, they keep saying BHL has veto power, but CGA has the veto power also because as investment agreement between the 2 parties - If BHL was able to do something that CGA didn't like, CGA could also veto it."

Daniel Ortiz
"The presentation that CGA has made to its farmers and general membership at its last meeting was that Banks Holdings is the problem, has always been the problem and will always be the problem if their influence remains in the industry. Is it the same opinion or do you at Belize Citrus Mutual have that similar opinion."

William Henry Bowman
"We left the Citrus Growers Association because of our disagreeing with the way CGA was being run by those directors. We wanted not a part to do with them because they were taking down the wrong road. Banks to me in my opinion has been an asset to this company and if only they could work together this industry would have been much bigger and much more viable. I don't see where Banks was the problem at all."

The terms set in today's meeting are supposed to be drafted up in an MOU to be finalized tomorrow.

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