CEO refused to honour contract with UG after India training

Jul 23, 2011 News

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– Computer contract scandal grows
… Digital Technology claims eight years in existence, but records show only two

Digital Technology, which was recently granted computer contracts worth close to $300 million, yesterday sought to hold itself up as a legal, ethical and honest company, but instead sunk itself deeper into the scandal which the government also tried to defend.
In a statement issued by the company’s chief executive, Krishendat ‘Terrence’ Sukhu, Digital Technology said it was amused and unfazed by the accusations, accusing Kaieteur News of publishing half-truths and conspiracy theories with the direct attempt to smear the company’s image.
But the company’s own statement and further revelations have put its reputation at stake.  Sukhu was relatively unknown until recently when he copped the two contracts. The first one was for $70 million, and the second for $223 million.
Sukhu was employed at the University of Guyana as a Computer Technician when he was sent on a three-month training programme to India in 2005. This is stated on the website of the Guyana Association of persons who would have been part of the Indian Technical and Economic Cooperation Programme.
Upon his return to Guyana, sources told Kaieteur News that he refused to abide by obligations to serve the University. The University Administration had recommended sanctions against Sukhu, but the University Council did not agree. As a result, Sukhu never fulfilled his obligations to the University.
Sukhu claims that Digital Technology was in business for the past eight years (the company’s own website dispute this) – first as a sole proprietor – until it was incorporated three years ago. Persons bidding for the computer supply contracts for schools were required to have three years experience.
The evidence shows that Digital Technology was not incorporated three years ago as the company stated yesterday, but two years ago. An official Certificate of Incorporation seen by this newspaper shows that Digital Technology was incorporated on June 2, 2009.
Both the Minister of Education Shaik Baksh and the Minister of Finance Dr Ashni Singh refused to see the documents when they called a press conference Thursday to defend the process involved in the award of the contracts.
Further, by the company’s own admission, if it was not yet a company until a few years ago, it then leaves the Minister of Education to explain how he could claim, on Thursday, that the company was not a “fly by night company” and has been given multi-million dollar contracts since 2002 at a time when Sukhu would have been 19 years old and another of the current director, Chandra Subrina Sukhu, 17 years old.
Digital Technology is listed as a branch of Digital Waves Technology, and not as the founding company. Its Head Office is listed at the address where it cannot be found. What this newspaper found at the address is what recently was the offices of real estate agents  is now a barber shop in Brooklyn, New York.

Digital Technology is listed at the Caribbean and Latin American office of that company. Sukhu stayed clear of any of these claims and did not even attempt to speak about the company’s head office.
This is the same company that yesterday claimed to adhere to high value and ethical standards in its operations, and for this reason has excellent relationships with its clients. However, the company has had difficulties with its clients for poor quality products. Details of this would be published in tomorrow’s edition of Kaieteur News.
The company announced that it has embarked on an ambitious project to extend its investment in Guyana with the construction of its multi-million-dollar 20,000sq ft. Super Complex located in Diamond, East Bank Demerara.
This complex will house its technical and senior management team together with the employment of more than 30 more talented Guyanese.
This Complex, the company said, is scheduled to be completed in October.
On July 13, Digital Technology Group of Companies (as it was registered in Guyana) was awarded a contract valued at $223 million for the supply of 1,400 desktop computers to 70 schools across the country. On Monday last, the Education Ministry awarded a further $70 million to the same company to provide more computers, plus servers and overhead projectors.
On December 8, 2010, Digital Technology was written to by the Registrar of Joint Stock Companies, which falls under the Ministry of Legal Affairs, regarding its breach of the Companies Act.
The company was found to be in default of lodging with the Registrar of Joint Stock Companies a number of documents. These included Annual Returns, Balance Sheet, Profit and Loss Accounts and Auditor’s Report for 2010. The company was given 28 days to submit the said documents or risk being struck off the register.
The company did not attempt to dispute this fact and did not offer any explanation.
In that same year, 2010, the company was given a $37 million contract to supply computers and accessories to the Ministry of Finance. The Ministers could not explain how the company could have been awarded this contract when it was in breach of the Companies Act, and further refused to look at the documents which state this.
The two Ministers called the press conference to discredit Thursday’s headline story in the Kaieteur News regarding Digital Technology which was found to have as its head office address what is now a Brooklyn, New York barber shop.
“We are not concerned about operations in the United States and Canada or Europe or any other country; it is registered and it is a recognized company in Guyana,” Baksh said.
In Guyana, the company’s local address is 54 Grove Public Road, East Bank Demerara.
This address is part of a business complex at Grove, which did not have a single computer to sell recently when a Kaieteur News reporter researching bidders for the government’s One Laptop Per Family project visited.
The reporter was directed to the company’s office in Sandy Babb Street, Kitty, and the result was no different.

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