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WPA flays 40-year licence to contractor for botched fibre optic cable projectaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

Posted By Anand Persaud On April 28, 2015 @ 1:08 pm In Local News | No Comments

The Working People’s Alliance today lambasted an agreement by the government for the botched fibre optic cable project saying that it gave the contractor, Dax Construction Company, free control over all of the assets of the project and a 40-year monopoly licence over the E-governance project for free.

The government recently revealed the agreement with Dax amid deep concerns over the flawed cable from Brazil for which it was said to have spent over $1b. It did not provide details on the project except to say that for its rehabilitation of the cable, Dax would have access to some of the cables.

The WPA said this was not so. Its statement said in part:

“The truth is that on March 16, 2015, Luncheon signed an agreement with Dax Construction Company, giving Dax FOR FREE control over all the assets acquired by the Project, and not “eight pairs” of fibre in the cable, as Luncheon said. Assets acquired with the billions of dollars from the Government under the Project include radio equipment, antennae and other equipment to set up towers and communication posts across the country.

No audit was carried out valuation done before the agreement with Dax was signed. This would have determined the quantities and values of assets contemplated in the agreement.

Under the agreement Dax acquired:

  1. A 40 years’ monopoly license over the E-governance project for free.
  2. A telecommunication license for free.
  3. An unspecified amount of spectrum for free.

Dax is a nothing company with a share capital of $7,000, yes, seven thousand Guyana Dollars, or less than US$35! But this agreement which Dr. Luncheon chose to lie about is not really about Dax. The clandestine GIFT to Dax without consideration is aimed at running an independent network that will be without Government control or oversight to facilitate revenue generation, wire-tapping and everything else. What is worse is that like the Marriott, the people of Guyana have paid dearly for it.

What is also cause for concern is the monopoly contract with Dax. More than 20 years after GT&T’s contract, the Government is yet to find a way out of that contract for which it blames the PNC. Yet, by its own action, the PPP Government has given a 40-year monopoly license and contract to Dax. It is a gift of 10 billion dollars…”

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