Conflict of interest?

By STABROEK STAFF  |  5 COMMENTS  |  LETTERS | TUESDAY, AUGUST 14, 2012 

Dear Editor,

Guyana has one of the most archaic, uncompetitive and monopolistic telecommunication sectors in the western hemisphere. Long-suffering Guyanese have been crying out for reform and competition in this sector for a long time. The PPP tabled telecom reform legislation last year and then strangely and unceremoniously withdrew it in September 2011.

Tele-Atlantic Network Inc’s 2011 annual report states “On December 15, 2010, the Government, through the Office of the President, sent a letter to GT&T indicating that GT&T’s Licence was renewed until such time as a new legislative and regulatory regime to reform the telecommunications sector in Guyana is brought into force; however, GT&T formally notified the Government that it is entitled to an unconditional renewal of both the exclusive and non-exclusive licence grants for an additional period of 20 years or until such time as GT&T and the Company enter into a negotiated settlement with the Government.” Then in April 2012, the PPP sold its 20% stake in GT&T to a Chinese company, Datang Telecom Technology and Industry Group. This foolish move not only eradicated the government’s, and by extension, the Guyanese people’s voice and stake in the GT&T monopoly despite solid revenues, it most egregiously put another foreign company as part of the nation’s telecom monopoly. Withdrawal of the legislation in September 2011 also meant GT&T’s monopoly continues with the monopoly now controlled by two foreign companies. The sector continues to be an uncompetitive eyesore.

This is the mess we are in with respect to the telecoms sector. GT&T is the dominant player with exclusivity and a monopoly. Retired Major General, Joe Singh, was GT&T’s CEO from 2005 to July 31, 2010. He became GT&T’s CEO again at the end of June 2012. Mr Singh is also an advisor to the President.

It is important to know when Mr Singh became an advisor to the President to determine whether he was advising the state when the telecoms reform bill was withdrawn and the government’s shares in GT&T were sold.

Mr Singh’s forgoing of his monthly salary as presidential advisor is immaterial and inconsequential to the real issues here. Who knows when Mr Singh decided to forgo his salary; was it in the past week when his massive monthly remuneration as an advisor to the President was revealed or did this occur shortly after he became CEO of GT&T at the end of June 2012? The critical issue is the potential for influencing and for a conflict of interest raised by Mr Singh’s presence as an advisor to the President and continued presence in that role. Competitors to GT&T, the telecom industry, companies seeking to enter the market and the general public cannot benefit from the current CEO of a telecoms monopoly advising the government , which holds the power to pass legislation and reform the sector.

The President cannot be relying on Mr Singh for advice in his capacity as advisor to the President and then with respect to full accountability and transparency be negotiating and bargaining in good faith with Mr Singh in his capacity as CEO of GT&T for that negotiated settlement GT&T seeks. This puts the President in a position where he is constitutionally mandated to act in the best interests of the nation but receives advice from an individual who is acting in the best interest of his company. Joe Singh cannot realistically be acting in both capacities on this issue and not be in a conflict of interest. This scenario would never be repeated in the jurisdiction of GT&T’s parent company without the US President and the CEO of Tele-Atlantic Network Inc facing not only public outrage but potentially investigations into their connections, actions and conduct.

GT&T’s 2011 annual report confirmed its fears about coming telecom reform in Guyana. At this point, the PPP has withdrawn the bill. One is left to speculate that it may be a delaying tactic to ensure the status quo by default, or is it to allow GT&T to strengthen itself before the competition arrives? It is obvious that competition within and reform of the telecommunication sector is vital to Guyana’s future despite the PPP’s backward moves. Guyanese need affordable, high-quality and fast telecoms services, particularly in data, so those PPP cart-before-the-horse election-gimmickry laptops can be put to better use than centerpieces, and be marshalled to delivering knowledge empowerment.

After all, something is desperately needed to lift the mental mass index of politicians in this country.

Yours faithfully,
M Maxwell

YAWN!

Emile Mervin's recent letter in Kaieteur News could hit the nail harder on the head when he explored government's plans to sell its shares in the Guyana Telephone and Telegraph Company under the caption 'Will those awarded government GTT shares become private partners in the ICT project?'

By now we all know about the government's or rather Jagdeo's plans to sell the 20% shares its has in one of the most financially sound company in this country. If you don't know, his crony and friend Winston Brassington has advertised for proposals or requests.  

But why would this government want to rid itself of these shares ? Should anyone take their answer of investing in the ICT sector at face value? 

Everyone should realize by now the government is moving into competitive sectors not for the need of it but for the want. Like Mervin pointed out, they have moved into the Hotel business by funding Marriot and we know about Cacique now why would be government want to be a competitor in the telecommunications or ICT sector ? Why not use the same valuable 20% shares in GT&T ?

 

Some sinister plot has being drafted but we may not learn of the beneficiaries in years to come.

  Its a sad day though, even the workers of the company would not be given a chance to bid for the shares which will be sold in blocs and coupled with that the Union that represents the workers can't even afford a pin - much less to bid for these shares.

End the Monopoly!

Every time some thing new comes to Guyana, King Jagdeo has one song to sing:‘I don’t want another monopoly’ 

But where he and his crooked cronies are to benefit he doesn’t mind at all. 

Yes, we hail the King when he weighed into GT&T and brought Digicel! End the Monopoly right! 

But am a little cat staring at the King asking him, please end the monopoly on Electricity, invite another electricity provider please!  

End the monopoly on radio, free up the airwaves. End the monopoly of NCN,give others a chance. 

End the monopoly of free travel around the world,send some others 

Oh and please end the monopoly on greed. Share the wealth!

The cloak of ICT

We have noted the prominence of the Guyana Telephone and Telegraph Company recently in the Media, with the arrival of its Fibre Optic Cable and what seems to be the appointment of one of the younger CEOs in the history of the Company.

Both are welcomed but we hope the Company and its young CEO have both eyes opened as the government is sneaking around under this cloak of ICT Strategy.

For one the government owns 20% shares of GT&T and is privy to all information possible about its fibre optic cable, its arrival, its setting up and its promises.

This is the same government that is headed by Chief Tyrant who is bringing his own cable for ‘e-governance’ across the Brazilian Border. Is the Government using its position as minority shareholder to abuse the inside plans of the company - against the company itself? Knowing Jadgeo and Brassington, we see their betrayal of companies' secrets as a real possibility.

We understand that GT&T does not see Jagdeo’s cable as competition since according to Major General Retired Joe Singh his company was assured that Jagdeo’s cable is for ‘e-governance’ only.

If so, then Jagdeo ought to explain why he is claiming that he is breaking a monopoly and what about reducing bandwidth?

Jagdeo must also tell Guyana why he is pursing some call centres not to set up shop in Guyana because of unreliable bandwidth, does he plan to sell his to them and what about that doctor, his friend who needs this cable for this Phone Company something soon?

GT&T better keep their eyes open.

What about government selling their shares in GT&T? isn’t that still open?

Our exclusive take on the NICIL BOSS

In this photograph Winston Brass Boy must be running off to State House to meet Jaggers to discuss their next deal as the two prepare to siphoned off monies from weary and disillusioned taxpayers.

We want to ask Brass Boy some simple questions:

1) Are you prepared to take a lie detector test?
2) What is Your salary?
3) How much % you make on those deals, yes THOSE deals?
4) Why are you leaving the country every month?
5) Where do you go and why?
6) Who pays for those trips?
7) Have you ever been to Russia?
8) Serious business now, how much money NICIL makes annually?
9) Are you prepare to reveal this?
10)What about an audit?
11)How many properties has NICIL acquired and sold recently?
12)How many friends of the President have you sold these to?
13)How many deals NICIL has negotiated recently?
14)How many closely linked to the Office of the President?
15)Brassy boy what about those Guyana Telephone and Telegraph shares you spoke about selling? and,
16)In whose name did you write Fip's US$1.6million cheque?

Brassy don’t lets be enemies, speak to us.

These monopolies

How Quaint!
A country with government owned monopolies.
1) Sugar – the sugar monopoly: beaten into submission by Burnham. Breathed under Hoyte. Boomed under Cheddie and Janet. Beaten to death by the Jagdeo-ites. A failed monopoly.
a)Jagdeo government paid million$ (management fees) to Booker Tate administration.
b) This same government collected millions from EU for the sugar industry
c) This same government took away guysuco land and paid for it with workers’ wages.
d) This same government collected SUGAR LEVY totaling more than that collected by the entire 28-years-PNC-government.
e) Jagdeo runs GuySuCo from his office, OP, since the chairman of GuySuCo (who has no business experience) operates from the office of the president.
Reason for all of this? Simple: the sugar workers are not pro-jagdeo

2) Electricity – owned by the Government, run by the Government.
Head of the GPL is:
i. The behind-the-scene-part-owner of another company
ii. The prime seller of government properties
iii. The owner of an island (really).
iv. The main broker for russkies
Another failed monopoly that cannot function even with the millions of sugar workers dollars being poured into it.
Political twist: the GPL is a black-people company.

3) Water: run by Jagdeo-ites.
Another failed monopoly that pays millions for sweet deals. Investigate the prepaid contracts handed for manufacture of pipes. See who got the contract.

Next time we will discuss GT&T, Gold board, health, etc.

Meanwhile, let us investigate how much land Lumumba really owns, how much property Brassington owns and how much contracts and $$$ are paid on a prepaid fashion to Atlantic.

Guyana's faux pas - data vs power

Wikipedia says:
"The electricity sector in Guyana is dominated by Guyana Power and Light (GPL), the state-owned vertically integrated utility. Although the country has a large potential for hydroelectric and bagasse-fueled power generation, most of its 226 MW of installed capacity correspond to inefficient thermoelectric diesel-engine driven generators."

Wikipedia also notes that Guyana's blackout (power outage) is the highest incidence in Latin America and the Caribbean.

The most incisive statement is that,"Electricity prices in Guyana are the third highest in the Caribbean." The rates range between US$0.25cents for residences and US$0.35cents for businesses (kWh). See GPL site.

The promise of cheaper power has been echoed for more than 30 years by several governments and now seems only a comfort to fools. It has been years since we have been told of Hydro Electricity and how such a venture would save us of billions of dollars we already spend each year on our fuel bill. For instance, our petroleum import bill for 2007 was almost 40% of our GDP. Not much has changed since then has it?

However, the Government of Guyana is now throwing more than US$37million behind bringing another fibre optic cable, a cable which benefits are still to be calculated.

In 2008 the President of Synergy Holdings Inc. (Makeshwar Motilall) spoke of bringing the Amaila Falls Hydro Project to a working state as he calculated an investment in this project at $400 million. Since 2002 we hve heard that the Hydro project has been slated to begin year after year. In 2006 Mr. Motilall was quoted as saying that the financial closing and ground breaking for this project were targeting for 2007 with December 15 2010 as the latest commence of work date. This 100 mega watt station is said to aid in the development of large scale industries and domestic consumption.

But has the government changed its course of direction in pursuing hydro power? Since the Memorandum of Understanding has been signed between the government and Synergy Holdings Inc, the Company has repeatedly been quoted in the local press as saying it is awaiting financial closure.

As noted above, The government has now quickly secured more than US$37 million to bring a competing fibre optic cable to promote e-governance and break the Guyana Telephone and Telegraphy Company monopoly. While the President has said that his cable will be used for egovernenace, his Ministers and the PPP MPs have insisted (even in Parliament) that their cable will be competitive.

At the same time, the telephone company (GT&T) has said that it was/is investing US$60 million on a new undersea cable.

So, while the Government is finding US$37 million for a data cable, it is hard pressed to find a Lesser amount for hydro electricity?

Why are they investing in something that others are investing in when they cannot supply basic power? What will the GoG's customers pay for bandwidth prices and will the GoG be regulated?

Also, what will power up the customers' data customers?

There is more to this data cable deal than can be explained by economics, politics or by the lame excuse that they want to bring data prices down by their (GoG) own cable.

The GT&T scapegoat

A monopoly that is shaking and toppling over - a breath of relief for Guyana.

The building of a new era is being heralded by the opening up of the telecommunications sector. The Government of Guyana has promised to liberalize the economy and is delivering on this - even if it is the only thing they do.

While the opposition is scratching their privates, the dolphin expert who holds mining concessions and received US$$$ to bring in the red company is now the Government expert on telecommunication. Of course he is the expert as he held the US$ payoff and he made good on the Red store at the airport.

Digicel's copyristmas

Christmas in the air. Digicel telecoms giant has announced it disappointing, puny copyristmas promotion.

Are we mistaken or is the Digicel Christmas program an replica of last year's GT&T promotion..... Lets see:
- They have an on-screen counter.... same as GT&T had last year? Same counters, same approach, same thing.... just packaged a little different. Wonderful copying Digicel! This is disappointing and disgusting! AND the most embarassing thing is that when they (Live on TV) call THEIR OWN SUBSCRIBERS the call goes to voice mail IMMEDIATELY. That is the experience everyday - 50% of the calls I place goes to voice mail!

On top of it all, the entire cash giveaways sounds just like..... GT&T's cash booth promotion last year!!!

Come on digicel, get better. your copyristmas sucks!
Until I see better, I am going blue!

Call Centers in Guyana?

How many call centers are there in Guyana and who provides them with bandwidth?
So far we have found: Qualfon, ATC, NPI.

How many companies we have that sell bandwidth?
GT&T, ENetwork, Broadband, Digicel....