CWU condemns TATT and NEL

“Government must act now” to ensure Cable and Wireless Communications (CWC) divests its 49 percent shareholding in the Telecommunications Services of Trinidad and Tobago Limited (TSTT), since CWC has a conflict of interest thanks to its ownership of Columbus Communications; Flow Trinidad and Tobago’s (Flow) parent company.

“CWC have had opportunities to sell those shares on the market but they have not. They have failed and they are holding our country to ransom, we believe, by existing in this state of a conflict of interest for more than two years.” “Government shouldn’t give CWC any further extension. It (Government) should act based on the provisions of the Shareholders Agreement; through National Enterprise Limited (NEL), and take control of those shares and dispose of them in the best interest of the country.” Remy said through NEL, Government has the authority, through NEL, as 51 percent shareholder in TSTT, to execute a force majeure and take control of CWC’s shareholding in TSTT “and have it disposed of to the employees of TSTT, local institutional investors inclusive of Pension Funds, the Unit Trust, Credit Unions, and citizens of TT.” In a statement issued yesterday, Remy noted that in 2014 CWC began the acquisition process of Columbus Communications, parent body of Flow, a direct competitor to TSTT in the telecommunications market.

“In the process they applied for a change of control for the concession that Columbus has as mandated under the provisions of the Telecommunications Act of TT. The CWU immediately raised objections to this process as we felt that CWC did engage in anti-competitive practices and was now guilty of a major conflict of interest.” “Despite our strenuous and legitimate objections,” Remy stated, “the Telecommunications Authority of TT (TATT) did grant the change of control to Cable and Wireless under certain conditions, the major one being that they should dispose of their 49 percent Shareholding in TSTT within 12 months of the approval date of February 2015, with a provision for a 6 months extension.” Remy pointed out that it was only after the union “went public” in August 2016, 18 months after the concession was granted, that CWC still had not disposed of its TSTT shares as mandated, that TATT then gave a further extension to CWC. “(TATT) indicated that CWC now had until December 31, 2016 to dispose of the shareholding, failing which the TATT would use the powers enshrined in the Act to act in the best interest of the country. All this time, Cable and Wireless continued to benefit from dividends from both companies,” Remy said.

Hence the union’s criticism of both TATT and NEL “for their abject and somewhat disrespectful silence on the status of the sale of the 49 percent Shareholding that Cable and Wireless/Liberty Global still holds in TSTT, which is supposed to be completed by December 31, 2016.” Remy told Newsday the CWU has written multiple letters to TATT and NEL about the issue “to shed some light on this development but they both failed and/or refused to do so.” “In the face of this gross disrespect by both State Agencies,” the CWU is demanding that the Minister with responsibility for TATT; Minister of Public Administration and Communications, Maxie Cuffie, “make an immediate intervention, consistent with his powers under the Telecommunications Act.” Newsday attempted to speak with TATT Chairman, Gilbert Peterson, yesterday but calls to his mobile phone went to voice mail.