On Thursday, August 13th, Cabinet announced that it does not support the proposed acquisition of SMART/Speednet by Belize Telemedia Limited (BTL). The decision follows growing opposition to the deal from concerned citizens and organizations across the country, including pressure from the social partners: the Belize Chamber of Commerce and Industry (BCCI), National Trade Union Congress of Belize (NTUCB), Belize Network of NGOs (BNN), and National Evangelical Association of Belize (NEAB).
In its official statement on Thursday, Cabinet acknowledged that the proposed acquisition is a matter of national concern. The transaction has reportedly been valued at approximately $80 million, with reports indicating that the family of Prime Minister Honourable John Briceño, which owns shares in SMART, could receive approximately $18 million as part of the transaction.
Cabinet stated that, given the Government of Belize, Belize Social Security Board, and Belizean people are the majority owners of BTL, it has an obligation to responsibly review all available data and relevant information and consider concerns expressed by its members, social partners, the media, and the public.
“After careful deliberation, it is Cabinet’s informed position that it does not support the proposed acquisition,” the release stated. Cabinet thanked those who participated in what it described as good-faith and constructive dialogue on the issue and assured Belizeans that it remains committed to listening to their concerns and acting in the national interest.
Following Cabinet’s decision, the social partners and their respective independent senators issued a joint press release welcoming the announcement. “We commend Cabinet for listening to the concerns expressed by Belizeans across the country. This development demonstrates the importance of public scrutiny, collective action and meaningful engagement on matters of national importance,” the BCCI, NTUCB, BNN, and NEAB jointly stated.
However, the social partners emphasized that Cabinet’s stated position does not, by itself, determine the legal and regulatory disposition of the proposed transaction. They noted that the Public Utilities Commission (PUC), as the relevant regulatory authority, retains its obligations under the law and said those processes must continue transparently, independently, and in accordance with the applicable statutory framework.
The social partners also reiterated requests contained in their August 6th statement calling on the PUC to address outstanding regulatory concerns surrounding the proposed acquisition, including its implications for competition and compliance with Belize’s telecommunications framework.
The group further called on BTL’s Board of Directors to act in accordance with its legal and fiduciary obligations and respond fully to their outstanding requests, including providing the financial information and valuation material necessary to properly scrutinize the transaction and the process undertaken to date.
“Cabinet’s announcement does not remove the need for accountability regarding how a transaction of this magnitude was introduced, assessed and advanced,” the social partners stated. “From the outset, our position has been that a transaction of this significance must withstand rigorous public, financial and regulatory scrutiny and comply fully with the law.”
The organizations said they will continue to act collectively in the public interest and remain engaged until the outstanding questions are answered.
In February of this year, the Government of Belize paused the proposed acquisition of Speednet Communications Limited, which operates SMART, by BTL. At the time, the government indicated that the PUC needed to first be involved in the process. On August 4th, it was announced that BTL’s Board of Directors had approved proceeding with the proposed acquisition. The announcement prompted renewed concerns from citizens and organizations, with opposition continuing to grow as discussions surrounding the proposal advanced.
On Tuesday, August 11th, Cabinet addressed the matter after meeting with representatives from the Belize Social Security Board, PUC, and BTL. Prime Minister Briceño said Cabinet had listened to the presentations and was expected to meet with representatives of the social partners on Thursday before making a decision at its next Cabinet meeting on Tuesday, August 18th.
BTL Chairman Markhelm Lizarraga had argued that consolidating the two telecommunications providers could create efficiencies and savings. He also dismissed concerns that the acquisition would create a monopoly in Belize’s telecommunications sector.
However, those explanations did not satisfy the social partners and their members, who reportedly declined to meet with the government on Thursday. Amid mounting public pressure and planned demonstrations, Cabinet announced later that day that it would not support the proposed acquisition.
Despite Cabinet’s decision, planned protests are still expected to proceed. Demonstrations have reportedly been organized for Friday, August 14th, and Tuesday, August 18th, in Belize City and the capital, Belmopan.