Uproar in Belize - Court says forced acquisition of telecom unconstitutional, but gov't ignores ruling

The Belize government said this week that despite a court ruling it remains in control of Belize Telemedia Limited (BTL), the lone telecommunication company in the country.

The political opposition on Wednesday urged the Barrow administration to respect the court's decision, and the Belize Chamber of Commerce and Industry has joined in condemning the government's actions.

On June 27, the Appeal Court ruled that the forced takeover of BTL was unconstitutional and that billionaire Lord Michael Ashcroft was wrongly deprived of his company.

The 150-page ruling handed down by Justice Brian Alleyne essentially nullifies the 2009 acquisition after the Court of Appeal found that the government did not have sufficient reasons to compulsorily acquire the company for public purpose.

"The most fundamental decision is that the amendment to the Belize Telecommunications Act, by which the government took control of Belize Telemedia Limited has been struck down by the Court of Appeal," said attorney Eamon Courtenay.

But in a statement from Belmopan, the Dean Barrow government said that contrary to a release purporting to come from a Dean Boyce and on the BTL letterhead, it was reiterating the position that "the only valid" Telemedia board of directors in existence is the one headed by Executive Chairman Net Vasquez.

"That will remain the case unless and until the courts of Belize order otherwise. The declaratory judgment of the Court of Appeal made on Friday proclaimed the rights of the appellants, the old owners of Telemedia, as against the government of Belize," the statement read.

"But that judgment contained no order that may be enforced. Absent that enforcement, the government of Belize continues in control of Telemedia in full consonance with the law."

While Prime Minister Barrow had initially conceded a stunning defeat and offered no resistance when the original owner Lord Michael Ashcroft send his managers to retake the company on Friday evening; the government soon had a change of heart and used the police to eject new executive chairman Dean Boyce.

The prime minister said he had changed his mind about giving back control of BTL because his legal advisers assured him that the judges of the Court of Appeals did not include an execution order with the judgment.

But Godfrey Smith, the attorney for Boyce, maintains that because the High Court's ruling is that the takeover was unconstitutional, that no execution order is needed and that the government refusal is a continued violation of the constitutional rights of his client and openly flaunting the ruling of the Court of Appeal.

The Barrow administration is holding to its position, saying the "correctness of government's stance is confirmed by the authority of pronouncements from both the Belize Supreme Court and the Belize Court of Appeal".

According to the statement in a judgement handed down on May 31, 2007, then Chief Justice Conteh relied on the Court of Appeal in finding that: "Declaratory judgments in contradistinction to executory judgments proclaim the existence of a legal position or relationship and would not contain an order which, ipso facto, may be enforced against a defendant. A declaratory judgment may, however, be the ground for subsequent proceedings in which the rights that have been declared ... may receive enforcement. It is therefore clear that a declaratory judgment may be the ground of subsequent proceedings in which the declared rights can receive enforcement. Until then, there is no enforcement of the rights declared."

The government said that this is precisely the position it is taking "because it is the law of the land".

"There is no enforcement of Friday's Court of Appeal decision and government's ownership and control of Telemedia therefore stands," said the statement

"Government also repeats that it is entirely confident that an application for enforcement would result in a form of redress to the previous Telemedia owners that would be other than an order of reinstatement," the statement said adding, in the meantime, the government "is proceeding full speed ahead with the appeal against the Court of Appeal decision".

The main opposition People's United Party meantime chastised the government for using "military force" to retain control of the company and urged the parties to "arrive at a reasonable settlement to this crippling dispute and the endless series of lawsuits and countersuits with the utmost urgency."

The party expressed concern over the well-being of the nearly 500 BTL employees and also warned that the conflict has caused serious damage to the reputation of Belize with prospective and existing foreign investors.

"The government's flip-flop, to first surrender and then retake the company using military force in the wake of the Court's ruling, has also brought into question once again its commitment to the rule of law and its respect for the judiciary," said the statement.

The Belize Chamber of Commerce also urged the administration to turn over control of the company to its owners.

However, the Barrow administration announced plans to go back to Parliament next week to again acquire BTL.

No detail on how that acquisition will be effected has been made public.

- CMC