YOG MAHADEO RESIGNS
– Finance Officer, three others fired
– Mahadeo says he feels betrayed
– two former CEOs to now head company
AMID widespread speculation in the media and elsewhere, Mr. Yog Mahadeo yesterday confirmed that he has resigned as Chief Executive Officer (CEO) of the Guyana Telephone and Telegraph Company (GT&T), following the acceptance by the company’s Board of his resignation which was tendered on Thursday evening.
While other sections of the media reported, yesterday, that the CEO had resigned, the Chronicle reported that the CEO was still on the job. Our report was on the basis that the Board of the phone company did not indicate that it accepted the CEO’s resignation.
However, Mahadeo confirmed his resignation at a hastily called press conference at the Pegasus Hotel yesterday afternoon. He said his decision is in keeping with his commitment when he assumed the position of CEO at the company, that should the company find itself in a compromising position, he will be willing to step aside.
‘Yog’, as he is popularly known and called, said his decision has nothing to do with wrongdoings on his part. He explained to the media that it was communicated to him, by the Board, that the audit found several irregularities with the company’s internal controls. Asked if he was updated about what some of those slippages were in the internal controls at the company, Mahadeo said he was not made aware of those in detail and with specific cases, but will be seeking to have those available to him.
Mahadeo said he will be sticking around at the company to assist with ensuring a smooth transition process. He also stressed that his decision to stick around at the company will be to ensure that he becomes aware of the deepness of the “internal slippages” and hopes to learn from them. He said that at no time did the GT&T Board ask him to resign and he did it on his “own free will”.
The former CEO of the phone company said that today he remains proud that he can walk with his head high with pride knowing that he has taken nothing from anyone and, as such, he cannot be seen as someone who was compromised. He said “leaders need to lead by example” and his resignation should be seen as one such case.
It is sad, Mahadeo said, that while he was doing all that he could at the top of the ladder, there were persons within the system who were not operating in the best interest of the company. He said he felt betrayed by those that have placed the company in the embarrassing situation that it now finds itself. He described the findings as hurtful to him and stressed that he felt betrayed when he was brought up-to-speed that things were not as “smooth and legit as they seemed”.
Asked how the slippages could have occurred and at the perceived proportion given claims by staff members including, one, that he micro-managed the operations of the company, Mahadeo said he is not aware that he was micro-managing the company. He also said his resignation should not be seen as him taking the blame for the persons who are culpable; rather it should be regarded as a decision that is in the best interest of the company and as a manager setting the example.
Asked if he was concerned that criminal charges may come his way later down the line in relation to the audit findings, the former CEO confidently responded in the negative. Over the last month the Guyana Telephone and Telegraph Company has been having some negative press, firstly with its Chief Financial Officer being fingered in the facilitating of a cheque from the company being made out in the name of a manager of another company, rather than it being written in the name of the company itself.
Following that revelation, the parent company of GT&T launched what was described as its annual audit of the local company by SARBOX. The GT&T Chief Financial Officer was asked to proceed on leave to facilitate the process. Three other officers who report to him were also asked to follow him and proceed on leave.
Yesterday, the GT&T Board announced, in a statement,  that those persons have been fired. Last week, the CEO explained that the audit is not necessarily restricted to the book-keepings of the company but all other aspects of the company’s operations. He said that is necessary if the company is to know where it falls short and which areas it need to improve on.
Meanwhile, the Board of Directors of GT&T yesterday also announced changes to its management. The Board named former CEO of the company, Major General (rtd.) Joseph Singh as the Chairman of the company and will operate as the company’s acting CEO.
Meanwhile, yet another former CEO, Sonita Jagan, will act as the company’s Chief Financial Officer, a position that Yog Mahadeo held for three years before becoming head of the company.
The release quoted a Board member Paul Bowersock as saying that, “with their extraordinary experience as former executives of GT&T, Joe Singh and Sonita Jagan will do an excellent job leading the company.  We are fortunate to have such great resources available to us.  Joe and Sonita will immediately assume their roles with the Company. Their first priority – and always the top priority for GT&T management – is to ensure the highest quality service for our customers and to look for ways to deliver even more value to them.”
He added that “GT&T periodically, and as needed, reviews internal controls and compliance with our internal code of ethics and conflict of interest rules.  Every employee is made aware of our strict business procedures, and we do not tolerate violations. In the course of a recent review, we found that the actions of some individuals have been inconsistent with our high ethical standards regarding internal business practices and conflicts of interest.  Accordingly, the Board has decided it is in the best interest of the company to make some changes in personnel. The Board has replaced our CFO, Royston Rachpaul, and three additional staff reporting to him.”
The Board member was further quoted in the release as saying that “because this failure to adhere to the highest standards of conduct took place on his watch, CEO Yog Mahadeo has determined it is in the best interest of the company for him to resign his position.  We respect Yog’s decision and appreciate the many achievements of the company under his leadership. Over the next couple of weeks, Yog has offered to help ensure that a smooth transition takes place.”
The release also added that no further personnel changes are planned at this time. Yog Mahadeo stated that the new team will chart its own course but he will still be around to offer his support and ensure that there is a smooth transition process. Mr. Mahadeo said he regarded the leadership of the company by two former chief executive officers as a good decision and pledge to work with both of them.
At yesterday’s press conference, Mahadeo also announced that the management of GT&T has indicated that it has no problem with him remaining on the Private Sector Commission on its behalf.
On Thursday, Mahadeo, whose resignation to GT&T was still pending, was elected as the Chairman of the Private Sector Commission.