The government will shell out $1.9 million to Bluewater Ventures Limited to settle a multimillion-dollar arbitration claim that alleges the Ingraham administration violated the deal the investment company reached with the previous administration, to buy 49 percent of the Bahamas Telecommunications Company (BTC).
“The government afforded Bluewater rights for a specific period, which Bluewater alleged had been breached, an allegation the government consistently denied,” explained the July 26 settlement statement which was signed by John G. Almeda, the government’s attorney, and Jason Cowleard, corporate director of Bluewater Ventures Limited.
“Under the terms of the settlement, Bluewater has agreed to withdraw the arbitration claim against the government, and the government has agreed to pay $1.9 million towards Bluewater’s out-of-pocket costs and expenses arising out of the lengthy privatization negotiations which occurred between October 2005 and March 2008.”
The news comes as the government continues its lengthy BTC privatization process which began in the 1990s, and has now spanned multiple administrations.
The statement released by the parties involved in the settlement carefully outlined that neither side was at fault for the failed deal.
“The parties emphasized that the settlement is intended solely as a compromise of the claim for commercial reasons, and is made without admission of liability or concession by either party that any claim or defense asserted or that could have been asserted is valid,” the statement said.
Prime Minister Ingraham has said that the money derived from the sale of BTC – originally slated to fund the construction of a new hospital In New Providence – will now go toward paying down the rapidly escalating national debt.
Click here to view a PDF of the agreement
