DAX axed on Brazil fibre optic cable contract

Aug 15, 2015 News

Faizal ‘Dax’ Mohamed (L) meeting with Minister of State Joseph Harmon

The new administration has ordered Dax Construction Company to halt works on the Brazil fibre optic cable, amidst an investigation to determine how much money was spent, as well as the way forward.

The fibre optic cable, which was to bring another source of internet connectivity to Guyana, was a major embarrassment for the previous administration, after it faced delays and other technical issues. It was part of a bigger initiative to advance Guyana’s e-governance drive and equip 90,000 poor families with laptops and link state agencies into a network.

Dax was contracted earlier this year by the former Government to repair the damaged cable and bring it into operation, in exchange for a number of concessions and partial use of the internet connectivity.

Yesterday, Minister of State, Joseph Harmon, met with Faizal Mohamed, the Principal of Dax Construction Company to discuss the cable project. Also there was E-Governance Advisor, Floyd Levi.

“The meeting was called to inform Mohamed that government has commissioned a team of telecommunications experts to review the fibre optic cable laying project that was overseen by former project manager, Alexei Ramotar,” a statement from the Ministry of the Presidency said yesterday.

Ramotar is the son of former President Donald Ramotar. He has been sent home.

During the meeting with Mohamed yesterday, Harmon informed the contractor that all works by Dax were to be halted while the assessment team does its work.

“Upon completion of the review the team will report on the project execution, the amount of money expended, the performance of contractors and consultants; they are also expected to advise Government on the possible utilisation of the cable and on the way forward.

Mohamed reportedly pledged his cooperation and gave his commitment to work with the new administration in whatever manner they decide, after the report would have been completed and perused.

“Harmon assured Mohamed that he would be fairly treated for whatever “measured works” he would have accomplished in fixing parts of the cable.”

The contract signed in March with Dax was heavily criticised by the former Opposition which is now in Government.

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 had started in 2011. It should have been completed by 2013.
Dax’s contract was for the repair, use and maintenance of the fibre optic cable from Brazil.
It was for an initial 25 years with an option to extend it for a further 15 years.

The contract says that the government would 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 Dax potentially could have competed with the Guyana Telephone and Telegraph Company and Digicel.
And for free, Mohamed would have been 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.
Dax would have been able to 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 then government had agreed to pay Dax for specific emergency maintenance.

The contract signed between Dr. Roger Luncheon and Faisal Mohamed has been described as the most generous giveaway package, worse that the Sanata Complex in the run-up to the 2011 elections. It also mirrored the giveaway of the radio frequencies done under the administration of former President Bharrat Jagdeo, during his last days.
The One Laptop Per Family and the E-Governance projects along with the Brazilian fibre optic cable initiative, reportedly cost taxpayers in excess of US$70M. Another fiber optic cable contained in a transmission cable laid by the Guyana Power and Light Inc. and stretching along the coast, reportedly pushed the finally tally well past the US$120M mark.