October 23, 2018
Hon. Victor F. Banks
Chief Minister
Government of Anguilla
The Valley, Anguilla Al-2640
Dear Chief Minister:
There is increasing concern by the people of Anguilla regarding your proposed sale of the Anguilla Electricity Company (ANGLEC). While your administration’s proposal in 2017 was to sell the 40% of ANGLEC shares owned by the Govt of Anguilla, effectively the people of Anguilla, to raise EC$26 million to support the 2018 Budget, it is a widely held view that you intend to divest completely out of ANGLEC, thus making it fully private. A majority of Anguillians are opposed to the sale of ANGLEC because ANGLEC is a vital asset to Anguilla, and full privatization is not in the national best interest. The general view is that we must preserve this asset for the people of Anguilla, and maintain ownership.
The Government of Anguilla controls not only the 40% of shares owned by the Government of Anguilla, but also controls 16 %owned by the Anguilla Social Security Board, 12% which was owned by NBA and 11% owned by CCB (now collectively under NCBA) thus controlling 79% of ANGLEC shares. While you stated that the sale is open to the citizens and belongers of Anguilla, it is unrealistic to expect that Anguillians can afford to buy a significant percentage of shares in this depressed economy. Therefore, it is apparent that your administration intends to sell ANGLEC to one or more foreign entities. This would be a travesty, and a betrayal ofthe trust placed in you by the people of Anguilla.
ANGLEC continues to serve a vital role in Anguilla as a good corporate citizen, contributing millions of dollars to health care, education, sports, culture and community development.
Foreign ownership of ANGLEC would subject the Company to a purely profit-driven model, thus reducing its commitment to developing Anguilla and its people. Jobs would be cut to decrease expenses, and management positions would be given to non-Anguillians. This would negatively impact many Anguillians, who would be unable to pay their mortgages or pay for their children’s education, and in some cases, feed their families. Also, the electricity rates could rise significantly since ANGLEC has a monopoly to provide electricity in Anguilla, and would be beholden only to its foreign shareholders. The recent increase in the fuel surcharge shows how severely people and businesses are affected by higher electricity bills. Also, a foreign-owned private ANGLEC may not be willing to extend credit to the Govt of Anguilla, which historically has been unable to keep payment for its electricity consumption current, owing ANGLEC millions of dollars.
I propose that ANGLEC can be more efficient and ensure that it meets its obligations to its current shareholders. As a monopoly, there is potential for significant financial upside for ANGLEC in a growing economy, therefore, measures to improve the economy would have a more lasting positive impact than disposing ofthis vital asset. I am sure that the Govt of Anguilla, along with the Board of Directors, can use its ownership in ANGLEC to find more creative ways to supplement the Budget and service the debt, rather than this proposed sale.
ANGLEC, owned and controlled by Anguilla is better for the people of Anguilla, now and in the future. Furthermore, I am convinced that public consultation and a referendum should precede any plan to sell part or all of ANGLEC.
Thank you for your attention and kind cooperation.
Sincerely,
Ellis Lorenzo Webster
Leader, Anguilla United Movement
Cc: His Excellency Tim Foy, Governor
Media
(Published without editing by The Anguillian newspaper.)
