Saturday, June 18, 2011

BELIZE rumor mill says NATIONALIZATION of BEL from FORTIS of CANADA imminent.


According to local FORTIS OF CANADA CEO IN BELIZE, SPEAKING FOR STANLEY, OWNER OF FORTIS IN CANADA, the trouble has arisen because of debt financing of working operations of the company. Banks will no longer lend money to BEL and the companies shares now are valued less than zero. It was of course the responsibility of the parent company FORTIS to GUARANTEE loans made to BEL for operating purposes.
The problem arose because of the management style of FORTIS. Which originally was to do everything by loans and FORTIS got into trouble with the auditors of the PUC, or Public Utility Company in Belize when the government changed hands. FORTIS had been lending money to itself through OFFSHORE SHELL COMPANIES the news media had reported, to run the company operations when needed, and earning interest on it´s own loans. The dividends and lack of investment and the padding with interest payments for FORTIS profits, has led to this disagreement with the current government of Belize. Fortis is DEMANDING that a $36 million debt of their National Grid Distribution company here in Belize, call BEL be dropped. According to lengthy media interviews on local television by the Prime Minister, this was identified as a $36 million debt from creative and imaginative bookkeeping during the previous PUP administration when the transmission lines expansion, were charged to the company BEL earnings TWICE. Plus they want a BLANK CHEQUE and to sidestep the PUC, while also raising customer electrical rates.
Needless to say the demand to drop the double bookkeeping charge of $36 million and demand to raise utility rates which has been mentioned on the TV, news are the main reasons for the debate. The Prime Minister has said, his friendly hand is held out to FORTIS of CANADA, for an amicable solution, but has been ignored. FORTIS of Canada are saying TAKE IT, or LEAVE IT!
According to local speculation on the TV News, it is going to be TAKE IT, in an unfriendly NATIONALIZATION, as FORTIS of CANADA are continuing to refuse to guarantee their bank loan operating system for BEL, in order to get the money. The Government of Belize has been financing operations of BEL for weeks now in the millions of dollars, while the refusal by FORTIS to operate their LOAN BORROWING system, by someone other than themselves, ( conflict of interest ) has led to massive debt pile up and a collapse of the electrical supply monopoly within Belize. Time is running out and the government has no choice. You cannot continue to lend millions to someone elses ´national utility monopoly company and let them run a profitable company into bankruptcy while playing ROBBER BARON hardball. Destroying the economy of Belize at the same time. FORTIS of CANADA has more money than the Government of Belize and is bigger than the local government by thousands of percent. FORTIS leaves little leeway for any sort of amicable solution.
If and when BEL is nationalized, then the operating system for what is a profitable utility has to gradually be changed from a loan borrowing system to a CASH RESERVES system. It will take at least 5 to 15 years to turn the company BEL around. If one is to set aside $5 million a year for example, in an operating and emergency set of cash reserves. One where you pay cash on the barrel as you go along. For a profitable company this should be no problem.
One of the better management skills FORTIS had, was the ability to pull in LINESMEN from all over the Caribbean where FORTIS had other electric supply companies, after a HURRICANE EMERGENCY DESTROYED THE TRANSMISSION GRID IN VARIOUS PLACES. Downtime as things got repaired and up and running was a management asset we and other countries enjoyed from FORTIS. In replacement. it now behooves our NEMO ( emergency management organization ) the skill to form knew leadership in forming bonding arrangements mutually beneficial throughout the Caribbean countries, particularly CARICOM countries and set up a NEMO system each year, to fly in linesmen to countries that are hit by HURRICANES and need a BIG FAST PUSH to rewire and re-pole the destroyed segments of local distribution grids.
After NATIONALIZATION, I think I will see if I can take a look at that old used junk turbine generator held for emergencies, which BEL cannot afford to run and see what the technical specifications on it are. Have thoughts about purchasing it, instead of importing one more suitable, and designed for the purpose, to supply electricity to the NATIONAL GRID as a profit making company. Will take some steam boiler system conversion, but we do think we can use it, or one like it, pre-engineered and imported and set up. Just be faster and cheaper, to use something already here, even if it will only run in FULL PRODUCTION for a 3 year life cycle. Give time to learn some lessons and acquire more better designed units if successful.

The Guardian Newspaper in Belize reprinted an article from the TCI JOURNAL, in Turks and Caicos. The small country the article is hinting, are about to KICK OUT FORTIS OF CANADA from the country just like in Belize. Allegations of bribery and accusations of using the DEBT PEONAGE system of operating the wholly owned subsidiary, electrical supply distribution system to enrich FORTIS and impoverish the citizens of the country of Turks and Caicos. In Belize with the same DEBT PEONAGE, plantation company store setup, of operating the distribution electrical system through loan borrowing, from itself, the take with dividends ( running 10% to 15% ), plus other fees and interest on loans lent to itself, through the BEL company in Belize and PPC, the Provo Power Company under the same plantation DEBT PEONAGE system, is amateurishly estimated a return to FORTIS of up to 40% of profits. Instead of a standard dividend rate for a utility. FORTIS SHARES may drop and looks like a good SHORT SALE for FORTIS stockholders with their various subsidiary contracts around the area. BEL is expected to be NATIONALIZED IN BELIZE THIS COMING WEEK. WHEN in Turks and Caicos? Though over there, they are talking about dissolving the contract due to various other illegalities and suing for reparations from locally owned FORTIS TCI and it´s parent FORTIS INC.

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