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

Posted By Anand Persaud On April 28, 2015 In Local News |

 

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…”

Last edited by Former Member
Original Post
Originally Posted by redux:
Originally Posted by Django:

Dax Construction Company

 

Where is this company from?????

GY battam house outfit

There was a thread regarding this issue,these people

need to put on check,i don't know how the people in

the homeland swallow the huge pills the PPP pushing

down their throat.

smh

 

Last edited by Django

Dax is in many types of businesses, we did discuss this a while back. They seem to be into everything and that is worrisome.

 

Dem boys got eveything is like dis:

You want a plumber...ah got one for you.  Oh is a accountant you need...  ah got one I could sen over. You there, can I help you? You want a what, a optic fiber cable man...sure ah got one a dem bannas here, he good at pullin wire.

Originally Posted by cain:

Dax is in many types of businesses, we did discuss this a while back. They seem to be into everything and that is worrisome.

 

Dem boys got eveything is like dis:

You want a plumber...ah got one for you.  Oh is a accountant you need...  ah got one I could sen over. You there, can I help you? You want a what, a optic fiber cable man...sure ah got one a dem bannas here, he good at pullin wire.

what u are describing is a 'front'

https://guyana.hoop.la/topic/go...ix-fibre-optic-cable

 

past discussion

 

 
9/17/11 12:00 PM
 
Topic by Demerara_Guy Demerara_Guy is offline. Click for Member Snapshot.
year. The 540-kilometer fibre optic cable that Government is laying from Brazil and the vehicle that Guyana is hoping will drastically change the way it is run, has landed in Georgetown. Connectivity is expected within two weeks, an official say. Currently
Last edited by Django
Originally Posted by Django:

https://guyana.hoop.la/topic/go...ix-fibre-optic-cable

 

past discussion

 

 
9/17/11 12:00 PM
 
Topic by Demerara_Guy Demerara_Guy is offline. Click for Member Snapshot.
year. The 540-kilometer fibre optic cable that Government is laying from Brazil and the vehicle that Guyana is hoping will drastically change the way it is run, has landed in Georgetown. Connectivity is expected within two weeks, an official say. Currently

PPP Yuh Lie

 https://youtu.be/Q0C-uYz4JNw

 

Govt gifts US$40M Brazil fibre optic cable to contractor

April 29, 2015 | By | Filed Under News 

…also grants tax exemptions, incentives, tax holidays, remissions, tax waivers, duty free concessions on vehicles etc.

 

The US$40 million fibre optic cable from Brazil is no longer to be the property of the taxpayers.
Cabinet Secretary Dr Roger Luncheon, literally gave the cable away when he entered into a contract with a small contractor, Dax Contracting Services Ltd owned by Faisal Mohamed on March 16, last.

 

cable 2
This same contracting service owned by Mohamed was one of the five contractors hired to lay the cable from Lethem to Georgetown.
The cable programme started in 2011 and remains incomplete to this day. It should have been completed by 2013.
The contract signed between Luncheon and Faisal Mohamed has been described as the most generous give away package, worse that the Sanata Complex in the run up to the 2011 elections.
It also mirrors the giveaway of the radio frequencies in Jagdeo’s last days as president.
Kaieteur News exposed the plot to steal the communication sector two years ago. This expose is still on the Kaieteur News website as the ‘Media and Telecommunication heist of Guyana’.
The agreement between the government and Faisal Mohamed is for the repair, use and maintenance of the fibre optic cable from Brazil.
This agreement is for an initial 25 years with an option to extend it for a further 15 years.
It says that the government will provide Mohamed with the necessary support to receive and transmit data by way of the cable after granting the company an operating licence.
This means that Mohamed will be equal to Guyana Telephone and Telegraph company and Digicel.
And for free, Mohamed will be able to use all the Government-owned fibre optic cables and structures including, roads, the poles, access to repeater stations and other things.
Dax Contracting Services would also be provided with tax exemptions and incentives, including but not limited to tax holidays, remissions, tax waivers and duty free concessions on equipment, spares, tools   and vehicles.
The vehicles would be two SUVs, and three four-door pick-ups, renewable three years for the next 40 years.
The government insists that it will retain possession and use of the bandwidth, as agreed to between Dax and the government.
As the owner of the cable, Faisal Mohamed can invite and sign with any company or entity to use the cable to transmit and receive data and information from any part of the world in the same way that today’s telephone companies operate.
To add insult to injury, the government has agreed to pay Dax for specific emergency maintenance.
In exchange for the operating licence, Mohamed will accept the risks involved in accepting and using the operating licence even before the legislation is passed.
And in the event of the United States voicing objections to the illegal move which could lead to the shutting down of GT&T/ATN, Dax will front for the government and so prevent the government from being penalised.
At present the taxpayer is paying Brazil US$76,000 per year on that same cable. The country is also paying some hefty salaries in US dollars to people who are doing nothing on the project.

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