The Government of Belize's recent stop order
requiring Belize Telecommunications Limited (BTL) to "cease implementation of
their new tariff structure" and for BTL to "revert to the position as it was
immediately before December 1, 2001" has created sparks. Irritated by the
government's Statutory Instrument, BTL representatives called upon the GOB to
release their "secret" and exclusive agreement for telecommunication services
from Intelco. Thus, the following information was released by the Government
Press Office in regards to the agreement between the Government of Belize, LGS
Services Ltd. and International Telecommunications Ltd.
An Agreement made between LGS Services Limited (LGS) and
the Government of Belize (GOB) and a Supplementary Agreement between the
Government of Belize through the Ministry of Finance (GOB), LGS Services Limited
and International Telecommunications Limited (ITL) have been scrutinized by the
Contractor-General. As a result of the scrutiny, the following observations are
made: (i) LGS shall donate 5,000 computers and assure Internet access from 8:00
a.m. to 3:30 p.m., free of cost to government educational institutions. (ii) ITL
shall assume the obligations of GOB to purchase the Wide Area Network from LGS,
but GOB shall retain title to the Wide Area Network until a final payment of
US$1.00 is made by ITL to GOB. (iii) GOB grants to ITL the exclusive concession
in the government's educational institutions to operate a Cyber CafÈ Programme.
(iv) ITL shall be the exclusive provider of Telecom Services to GOB. (v) GOB
shall grant to ITL the concession to provide maintenance and technical support
services in respect of the 5,000 computers referred to at (i). (vi) In
consideration of the Telecom Services provided by ITL to GOB, GOB shall pay a
monthly fee to be mutually agreed between GOB and ITL, but this shall not exceed
90% of the average aggregate monthly sum presently expended by GOB for
telecommunications services. (vii) In respect of the delivery of services by LGS
or ITL to the educational institutions (government or government-aided), GOB
will exempt LGS and ITL from the payment of income tax, business tax, property
tax, visa and work permit fees, stamp duty, revenue replacement duty and Customs
and Excise duties. (viii) The Agreement (and Supplementary) shall last for a
period of fifteen (15) years from September 25, 2001, provided that if either
party is in breach of the Agreement, the other party may, after giving the
defaulting party 90 days notice to remedy the breach, terminate the
Agreement. The
Agreement and Supplementary provide for the non-disclosure of "confidential
information". Confidential information is deemed to include the Agreement, but
excludes matters that a receiving party is compelled by law or legal process to
disclose. As you are aware the documents made available to this office were
supplied in compliance with the legal requirement of the Contractor-General Act,
1993 (No. 6 of 1993)./s/ (R.C. Swift) (Sr.)
CONTRACTOR-GENERAL
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