Latest update December 13th, 2024 1:00 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

A NEW MODEL OF STATE INVOLVEMENT IN THE ECONOMY IS TAKING SHAPE

Jul 11, 2010 Features / Columnists, Peeping Tom

Last year, the government proposed to sell the highly lucrative shares that it held in the Guyana Telephone and Telegraph Company (GT&T). It said that the monies earned would be used to push the development of the information technology sector in Guyana. This was taken to mean that the money would be used to improve bandwidth and access to bandwidth services for the population.
The PNCR came out against the plan to sell the shares arguing that the shares were profitable and if there was a need to sell, the shares should be disposed of to the workers of the telephone company.
The telephone company declined the offer to buy and the workers have not yet been given the chance to buy that significant 20% block of shares in their company. It shows just how far the ruling PPP had drifted away from its working class roots, for it would propose to see its shareholding in a company to the private owners but when that offer is declined, no similar offer was made to the workers. What a disgrace!
The workers of this country, however, do not seem bothered judging from the enthusiastic response that they are giving to government leaders throughout the country. There are roaring with approval as the gravy train makes its way around the country. The government is sitting good with the masses, and this often becomes a licence to do as it pleases. This is why greater vigilance must be exercised by the watchdogs within our society, including the media.
The revenue earned from the sale of government’s shareholding in GT&T was expected to be used to purchase a fibre optic cable from Brazil. This project seems to be still on the books even though it is not yet certain what is the actual cost of the cable and why there was a need for the government to go to such lengths and such expense to procure this link when the telephone utility has invested in a new infrastructure which can offer the same service.
The government says that it will not be competing with the private sector in this project which will be used for its own e-governance programme. But why invest so heavily in a new cable when there is unlimited spare capacity in the cable brought in by GT&T? How much capacity is this e-governance project going to have that it requires a separate cable at great expense? And where is the money going to come from for this undertaking?
The fear is that despite the assurances given, the government may in fact be in a new phase of development, whereby it will once again be re-entering the commercial sector and competing with the private sector, which is against the neo-liberal model of structural adjustment which Guyana adopted in wholesale manner in 1989.
This view that the State may now be venturing back into the business sector is supported by a number of signals which are emanating from officialdom, the most glaring of which is the formation of a company to pursue a joint venture to build a hotel that will bear the Marriott brand.
Instead of leaving this development strictly to the private sector, signals are being received that the government plans to actually be a co-investor in the project with a plan to later dispose of its shareholding.
This is why the possibility of the new cable from Brazil being used for competition with the private sector should not be ruled out. It is not going to be feasible to dedicate the proposed cable from Brazil only for governmental use. The cost of the cable link is prohibitive and the only way in which this expenditure can be justified is if bandwidth is sold to private entrepreneurs.
The government may insist that the importation of this fibre optic link will help reduce the cost of bandwidth. But the only way for this to happen is for it to compete directly with existing service providers, and therefore, it is difficult to see how the question of direct competition between the government’s cable and that of GT&T can be avoided.
There are also highly influential private individuals with close links to the government who are planning investments in things such as satellite phones and massive call centre parks. These investments demand low-cost and reliable bandwidth, and since the government is also keen on pushing this sector, there is little reason to doubt that the cable from Brazil may be used to help fund investments of persons with influence over the government and who have been doing very well when it comes to the divestment of State property.

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

 

THE BLUNT OF THE DAY

Sports

Dream debut: Jangoo hits magnificent 104* to lead West Indies to 3-0 ODI series sweep over Bangladesh

Dream debut: Jangoo hits magnificent 104* to lead West Indies to 3-0...

Dec 13, 2024

SportsMax – On the back of a magnificent debut century by Amir Jangoo, the West Indies completed a 3-0 ODI series sweep over Bangladesh with a four-wicket triumph in the third game at Warner...
Read More
Guyana bounced out of FIBA 3×3 AmeriCup in Puerto Rico

Guyana bounced out of FIBA 3×3 AmeriCup in...

Dec 13, 2024

VMFA concludes year with memorable Football Festival

VMFA concludes year with memorable Football...

Dec 13, 2024

Resounding success for Region 6 CNOOC Petroleum Guyana Limited-GTTA/MoE  National Schools Table Tennis C/ships

Resounding success for Region 6 CNOOC Petroleum...

Dec 13, 2024

GCC hosts stellar awards ceremony following successful 2024

GCC hosts stellar awards ceremony following...

Dec 13, 2024

CSEC PE Golf Numbers Rising Due to Guyana Golf Association Efforts

CSEC PE Golf Numbers Rising Due to Guyana Golf...

Dec 13, 2024

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]