GRA officials in yet another bribery scam - telephone company implicated

Secret deals seems to be the thing of the day as We learn of yet another series of secret deals between GRA officials and persons from the private sector. Millions of dollars are being spent every year on paying off the customs officials. Based on our reports from one ex-customs officer, the largest payoffs came from a telephone company and a hardware store. In this first expose, we will deal with the overall accusations.

The telephone company under the microscope recently fired its chief financial officer for "conflict of interest" without disclosing what those conflicts were. We are left to wonder if the CFO was involved in this scandal and would like to talk with Mr. Rachpaul (Mr. Rachpaul, if you read this, please contact us on corruptionexpos_e@hotmail.com.

Joe Singh's emergence, as M. Maxwell questions in the Stabroek News, indicates another clear conflict of interest. However, Joe Singh was being paid off by ATN to sit at the office of the president to influence the Government's action (or inaction) on the legislation and so his conflict is obviously not in the same class as the CFO's. It was during Singh's years that the telephone company paid over 20 million dollars (per year), that's $20,000,000 in bribes to GRA officials to allow its goods to avoid detection. The ex-customs officer said that GT&T cannot produce any record of their payments to GRA, since it was all paid as bribes.

It seems that the CEO's of GT&T have a history of such dealings since it is public information about the foreign exchange deals that were done by the former CEO, Jagan (current CFO). It was also under CEO Jagan's so called “guard” that a few of the Government's properties were sold for cash. These Government properties were claimed by GT&T to be their own, so they sold it off (where was Brassington??). This deal had also included the payment of this ex-GRA officer.

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

Tun-up

Dear Editor 
      Guyana recently witnessed a bizarre corporate revolution with the resignation of GTT’s CEO whose ebullient spirit was all over the country. Not many people knew that GT&T’s chairman also resigned and was replaced instantly. 
Joeseph Singh (JS) and (SJ) Sonita Jagan then jus’ “tun up”! These two with the same initials “tun-up” to switch us back. 
     Singh, who has been a pawn for the Americans since his Army days, is new Chairman of GT&T’s board and its CEO and is also Chairman of the Gold Board and chief adviser to Government on security (along with GeeGee). 
     It signals high-level corruption in Guyana fuelled by ATN which is allowing these new appointments by paying an employee of Office of the President. Singh and Jagan have been on ATN payroll for the past decade even when Singh was working at OhPee and Jagan was in USA. Everyone knows that a GT&T’s driver worked for Singh while he was working at OP as well with the entire Jagan family. Is there a sinister plot here? The bribery of previous and current GRA officials is well known through. 
      Was ATN keeping Singh to influence the Government while he is on both the payrolls of ATN and Government? Is Singh back now to control Government’s action on the monopoly? Will Singh and Jagan now influence the APNU and AFC to adopt the ATN brand of legislation by doling out american dollars to them? Of course corruption is nothing new to ATN. Some of us older people remembers ATN’s involvement in paying off officials in Guyana. Dating back to the payment for the privatization deals when ATN bought GTC, paying off of judges, commissioners, lawyers and even ministers, a lot of people were paid off over the past twenty years. The last CEO's anti-Government stance obviously upset ATN who signalled their new intent with return of Singh and Jagan.
     And so ATN’s new-old faces now ‘tun-up’ to “switch” back to the good old days of fraud, industrial relations conflict and corruption of officials. 
    Break this monopoly now!


 S. Issacs

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?