Heist of media, telecoms industry…Secret deal gives cable TV operators free ride on GPL poles

Nov 24, 2013 News

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– power company reportedly losing millions from uncollected rentals

Not only did the administration of former President Bharrat Jagdeo facilitate granting his friends cable TV licences, but there may have been some concessions too.
The power poles owned by the Guyana Power and Light Inc. (GPL) are being used to string cables in certain parts of the city and the coast but there is no clear indications whether rental monies are being paid, how much and at what rate.
The leverage given to some of the companies may shed some light on how certain businesses were given unfair advantage above others under Jagdeo. It may also signal how taxpayers’ monies were used by the former Government to enrich a few close ones, more than likely under the direction of the former President.
Back in June, GPL’s Chief Executive Officer, Bharat Dindyal, disclosed that over 8,000 power poles are in use by three cable companies- E-Networks, Bartica Communications and Atlantic Cable TV Network (ACN).
He said, then, that ACN was in negotiations for use of the power poles. However E-Networks had signed an agreement. So too had the Bartica outfit.
However, there are no indications what arrangements are in place.
E-Networks has been stringing cables along GPL’s poles starting from Lamaha Street and reportedly reached along the East Coast of Demerara.
That company and Quark Communications Inc. were among two companies given the controversial operational go-ahead to run cable TV services by Jagdeo.
Now both companies, along with Global Technology, stand at the head of the line also for telecommunications licences that will be granted once new laws are passed. These licences will also allow both to offer telephone services, mobile services, internet and a host of other high demands.

While there is a welcoming call for the telecommunications sector to be opened up to new competition, it is the “barefaced” manner in which the coveted licences are being handled that has rankled players.
At $2,300 per pole annually, and 8,000 of these being used back then, it is estimated that GPL could rake in over $18M from rentals alone. Hundreds of more poles are reportedly in use now.
Dindyal has said that the cables being used are small ones and would not cause much wear and tear.
The complaints of uncollected rentals would be more than significant as GPL is facing an uphill task meeting payments for its rising fuel payments.
Efforts to contact with Dindyal and his deputy, Aeshwar Deonarine, proved futile the past week. Deonarine is on leave while the CEO’s phone went unanswered.
One senior GPL official, however, said that rental has been a big secret with no one really aware of the arrangements, except maybe the Board members.
The spotlight has been placed on the telecommunication and media industry after disclosures that Jagdeo and his close friends have virtually gained control.
Based on complaints from industry players, Kaieteur News last week conducted some investigations and made some shocking finds.
GPL Chairman, Winston Brassington, a close buddy of Jagdeo, is sitting as a shareholder of Quark – a company started up by Brian Yong. Yong is a former candidate of the ruling party and a close friend also of Jagdeo.
Yesterday, Leader of the Alliance For Change (AFC), Khemraj Ramjattan, said that his party has been paying a close eye on the revelations, which are shocking at the very least.
“We are seeing the linkages very clear in this heist of the communications and media. Of course, we will be asking GPL to produce the arrangements. It would be highly wrong for GPL to be giving permission without charging.”
Another shareholder in Quark is Sabrina Singh, a niece of Jagdeo.
Quark is operating in the Versailles, West Bank Demerara property of Dr. Ranjisinghi Ramroop, who incidentally is Jagdeo’s best buddy pal.
Ramroop is a director of Global Technology which is earmarked for a telecoms licence.
Another major issue is the fact that there is disagreement whether E-Networks could string cable on the poles of GPL. Back in 2011 when E-Networks and Quark, were approved by Jagdeo, it was argued that Atlantic Cable, a Herstelling-based cable TV company, was being viewed differently and could not be granted a licence.
The impression then was that because Atlantic ran physical cables and not transmit using the airwaves, that different arrangement would be made. However, the Guyana National Broadcasting Authority later issued licences to Quark, E-Network and Atlantic. E-Networks has been running physical cables for several months now.
In addition to cable TVs and the impending telecoms licences, Jagdeo has also approved several radio operations for his party and close friends. Several frequencies went to Ramroop, his close friend, and to a sister of Natural Resources Minister, Robert Persaud.
Collectively, Opposition parliamentarians have said, a number of entities with close links to Jagdeo and his friends have virtually hijacked the telecoms and media industry,  which should be a worry for any country.

 

 

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