BCCI reaffirms grave concerns over BTL’s proposed Speednet acquisition

By Breaking Belize News Staff (HP): The Belize Chamber of Commerce and Industry has publicly reiterated its firm opposition to the proposed acquisition of Speednet Communications Limited, operators of Smart, by Belize Telemedia Limited in its current form, warning that public resources and Belizean workers’ pension funds are directly at risk.

In a release issued Monday, the Chamber said that following its formal correspondence of July 30 and a response from BTL Chairman Markhelm Lizarraga dated July 31, its critical reservations regarding governance, financial due diligence, market competition and legal compliance “remain entirely unaddressed.”

According to the release, BTL has indicated its Board of Directors is satisfied with a targeted, risk-based valuation conducted by Moore Belize, premised predominantly on a single year’s revenues. The BCCI maintains that a transaction of this magnitude demands more, because BTL is majority state-owned and significantly financed by the Social Security Board.

The Chamber laid out four concerns. On financial transparency, it insists a second, fully independent valuation supported by no less than five years of audited Speednet financial statements is a prerequisite for fair market valuation. On market structure, it notes Belize lacks any comprehensive competition and merger control legislation, meaning the deal would create what it calls a state-backed telecom monopoly without legislative guardrails. On legal compliance, it says eliminating BTL’s only meaningful competitor raises severe issues under Section 42(4) of the Telecommunications Act, and that Public Utilities Commission oversight cannot replace market-driven competition. On consumers, it warns of higher prices, diminished service quality, reduced choices and slower innovation.

“As the representative of more than 6000 employers across Belize, the BCCI has a fiduciary and civic responsibility to safeguard the business environment and public investment,” said Chamber President Giacomo Sanchez. “Voluntary promises and contractual indemnity clauses cannot replace real market competition.”

The Chamber is urging BTL’s Board, the Government of Belize, the SSB and the PUC to halt the acquisition until the audited review and second valuation are provided, a national merger control framework is enacted, and compliance with the Telecommunications Act is independently verified. It says it remains open to constructive dialogue. BTL’s fuller response to the renewed statement was not available up to news time.

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