And so what is the accommodation agreement - you've certainly heard it talked about - but few know the details.
In June of 2008 - we got to see this secret document for the first time - and Jules Vasquez reviewed the salient points….
Jules Vasquez Reporting,
This is the accommodation agreement. The principal document is 31 pages and is built around this, government's agreement to cover its Intelco losses by selling 4 former Intelco properties to BTL for $19.2 million.
Government also agreed to a 15% minimum rate of return for BTL - and according to schedule 2, that minimum return must be calculated to include, quote "any assets acquired...by BTL in the performance of this agreement." So that means the $19.2 million used to cover Government's Intelco exposure, is to be paid by you the ratepayer, in your phone bill.
And article 11.4 is where all the current problems begin. It notes that in the event that BTL fails to achieve its minimum rate of return, the government has to compensate BTL - and if that isn't paid in full by a specified deadline, then the shortfall "can be set off by BTL against the amount of any taxes including business tax, sales tax or other taxes" payable by BTL to government.
But that's not all the agreement does. There are also 10 other undertakings that make blanket giveaways and concessions to BTL, including government's undertaking that only BTL and Speednet - which is SMART can operate as phone companies in Belize for a period of 15 years. As regards Voice over internet, Government undertook for a period of 15 years that no class license holder is permitted to use voice over internet known as VOIP technology.
And there it is signed in secret by the Prime minister and the BTL Chairman Keith Arnold 19TH September 2005.
While PM Musa signed the original his attorney General Francis Fonseca did sign two subsequent and directly related agreements. Those are called the first settlement and the second settlement. These refine and in some cases amplify and in others, attenuate the terms of the original document. But to be clear they form part of a bundle of documents collectively called the Accommodation Agreement.
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