The Citrus Growers Association – they own 51% of the Citrus Products
of Belize Limited – which amounts to controlling interests – but
they say they don’t control the company because the directors, who are
supposed to represent them, actually don’t. They’ve been struggling
to get them ejected but that matter is before the court. But as they say, while
the grass is growing, the cow is starving – and in this case – while
what they call a rogue board is running things, the growers stand to lose their
controlling interest. That’s because they have to pay off a loan of over
$11 million that they owe for 10% of the shares in CPBL.
If they can’t pay, the stand to lose the shares and their controlling
interests – which they say would suit the monied interests in the industry
just fine. Today CEO of the CGA Henry Anderson and Champion of the small growers
Denzil Jenkins came by out studio to tell us about their plight.
Denzil Jenkins, Citrus Grower
“We are held totally at ransom without dividends from CPBL; we had
no dividends last year when the company made $5.2 million. We are getting no
dividends this year when they lost $10 million but still there is some $10 million
of retained earnings when the company under the Companies Act can still pay
a dividend. Without dividends we cannot service our debt with AIB and Social
Security for the acquisition of those first ten percent shares. If that happens, 
CPBL, the growers will lose their 51% majority shareholding in CPBL. We have
no other reason but to believe that that is a designed deliberate strategy.”
Henry Anderson, CEO – Citrus Growers Association
“What this is showing is that what should have been our partner is
behaving in such a way that it has no regard for the views of the majority shareholder
and will stretch out this through to the end. When we look at all of these things,
that is what we see.”
Denzil Jenkins,
“Judging from what has evolved over our dealings with partner banks,
we can see a very difficult time ahead. As things are going, very shortly we
are going to reach that point of no return as far as any kind of peaceful co-existence
with a major partner in business. Now where does that put the business? Where
does that put the business? So there are some very very difficult decisions
ahead; very very difficult.”
Henry Anderson,
“As I’ve said before, growers’ emotions are going high
and they may take other measures to basically make their points known. We are
trying to keep the peace because you have to be constructive in an important
industry like this but coming out of December 4th, that flies smack in the face
of every thing else and things in the valley are very hot right now.”
The CGA is waiting for the court to determine if they have the unfettered
right to name and appoint their directors. In the agricultural sector, Citrus
brings in the most foreign exchange.
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