“RECKLESS abandon of truth” was the phrase used by Head of the Presidential Secretariat (HPS), Dr Roger Luncheon, to describe reportage – “nonsense, crap and scandals,” – on the agreement for the rehabilitation of the state-owned fibre optic cable by two local dailies, Kaieteur News and Stabroek News.And he contends that the reports, which contradict the dailies’ own prior reports, are intended to discredit the current People’s Progressive Party/ Civic (PPP/C) administration and its effort to advance its Information Communication and Technology (ICT) thrust.
At a news conference yesterday at the Office of the President, Dr Luncheon explained that contrary to the report that the cable cost some US$40M to lay, only some US$4.5M was expended to lay the cable from Lethem to Georgetown.
The need to have rehabilitative works done after the cable was damaged is where Dax Contracting Services became involved, he said.
The HPS added after the need for rehabilitative works was made public, via a news conference he hosted in the latter part of 2014, was Central Government approached by Dax Contracting Services.
AGREEMENT REACHED
After technical advice was sought, an agreement was inked. The signatories are Dr Luncheon, representing the Government of Guyana, and Mr Faisal Mohamed on behalf of Dax Contracting Services.
The HPS underscored that the agreement is still not fully executed owing to the fact that arrangements with Go-Invest, the Guyana Revenue Authority (GRA) and the Ministry of Finance are to be finalized. However, he pointed out that despite this, Dax Contracting Services still commenced work on rehabilitating the cable.
The document, to which the media was made privy states that Dax Contracting Services will rehabilitate the state-owned cable and related structures from Lethem to Castellani House compound, Georgetown.
The company is also committed to routine maintenance of the cable, repeater stations and equipment for 25 years, with the option of renewal for an additional 15 years.
In exchange, Dax Contracting Service will be allowed to use two of the 12 pairs of cable-lines within the cable, as well as state-owned fibre-optic structure equipment, including access role, access to poles and access to repeater stations, etc.
The company will also be provided with necessary support, according to the law, in obtaining licences to transmit and receive data via the fibre-optic cable. The agreement allows the company to enter into a joint venture agreement with any other company or entity so as to execute this agreement, which includes the use of cable to transmit and receive data and information from any part of the world, according to the laws of Guyana.
Tax exemptions were also part of the deal. The exemptions include, but are not limited to tax holidays, remissions, waivers, duty-free concessions on the importation of equipment, spares, tools and two SUVs and three four-door pickups.
NO PUBLIC EXPENDITURES
Dr Luncheon highlighted that the undertaking did not go to public tendering, since Government was not paying for a service; rather the agreement was to have the cable rehabilitated and maintained in exchange for partial use by and concessions to Dax Contracting Services.
“Do you need public tendering if you don’t have to pay?” he questioned.
According to him, this route was cost-effective when matched against the estimated cost of the works, which was US$30M at maximum.
Expenditures by the Government, according to the agreement, would only occur in the event of an emergency and even then would be restricted to an approved formula that takes into account the Government’s provision of duty free concessions for equipment, spares and tools.
Another clause in the agreement that raised a question was the one that states that: “Dax Contracting will fully and timely support the Government of Guyana in any response that the Government of Guyana has to legally undertake in the likelihood of intervention by GT&T/ ATN (Guyana Telephone and Telegraph and Atlantic Tele-Network) with regard to the use of the Operator licence.”
Dr Luncheon’s response to queries in this area, was, “I don’t believe that you are unaware that GT&T insists that it has a monopoly not only on voice but on data…(what) I am preserving is the Government’s freedom and saying to Dax ‘if I touch base with you in this area, you better line up behind me and prepare to support the administration in any possible engagement with GT&T or ATN’.”
He added that the clause was necessary.
All considered, the fibre-optic cable and the use of its bandwidth remains Government property. “The cable is Government-owned. It was, is and forever will be Government- owned,” Dr Luncheon declared.