Digital Technology supplied faulty equipment to UG

Jul 24, 2011 News

The letter from the Ministry of Legal Affairs in which Digital Technology was threatened with being struck off the Companies Register if it did not comply with the Companies Act.

… Education Ministry scampers to cover tracks

Digital Technology, the firm that has secured multi-million dollar computer contracts from the government since 2002, has been found to have supplied wrong and faulty equipment to the University of Guyana. And the Ministry of Education is looking to cover its tracks in the growing scandal.
On Friday, the company issued a statement to assert its reputation given revelations by this newspaper, including that its Head Office address in Brooklyn, New York has been found to be but a barber shop.
“Our strategic alliances allow us to provide our customers with quality products and services at competitive prices,” the company said, but the evidence paints a different picture.
Minister of Education Shaik Baksh had claim that there have been no complaints since the government and his Ministry in particular has been dealing with Digital Technology.
On Friday, Digital Technology said that it adheres to “high value and ethical standards” and this is one of the reasons for the “excellent relationships” it shares with its clients.
But Digital Technology had way less than an “excellent” relation with the University of Guyana. The local university has been supplied with equipment by the company through the Ministry of Education.
Sources have told Kaieteur News that the Ministry of Education recently paid the company $10 million to replace two 25KVA UPS (uninterrupted power supply systems) that were damaged by the massive flood in 2005.
The original equipment were of the Powerware brand. The Ministry made a decision to replace the equipment with the same pair of Powerware-branded UPS.
However, Digital Technology delivered equipment different from the specifications it should have.
What the company supplied was two 20KVA APC UPS – a different brand and a less than the required KVA.
The equipment was installed by a different company, which has an East Bank Demerara address and which was said to be an extension of Digital Technology.
The equipment was installed some time in October 2010, but did not last more than a month. The University complained to the Ministry of Education, Digital Technology and the firm that installed the equipment, but to no avail.
With months of delay, the University decided to hire another company and as a result Digital Technology has not been held to account for the faulty equipment.

Krishendat Sukhu, CEO of Digital Technology

In fact, this was not the first time that the University had concerns with the company.
A senior University official told Kaieteur News that the University in the past did buy equipment directly from the company, but it was found that the equipment would soon need repairs. And as a result, the University stopped buying from the company and now sources directly from Dell, through a relationship established with the University of the West Indies.
Krishendat 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, but upon his return to Guyana, sources told Kaieteur News that he refused to abide by obligations to serve the University.
On Thursday, Minister Baksh defended the company, saying it was not a “fly by night” entity, since it was handed a total of 38 government contracts since 2002. Baksh went as far as to say that the government has had no complaints about the company.
However, caught in the scandal and unable to account for any due diligence done on the company before the award of one of its recent contracts – amount to $223 million – the Ministry seems to be making sure that it covers all its tracks before more revelations emerge.
On Friday, sources told Kaieteur News that officials from the Ministry touched down at the University’s Berbice campus to take details regarding computers that were supplied to that campus a while back.
In addition, the officials were also Friday at the University’s Turkeyen campus, taking details about computers that were delivered by the company since last December.
It appears that no checks were carried out on the equipment that were delivered to the University. Kaieteur News understands that an estimated 30 computers with equipment were dropped off at the University since last December, but the Ministry of Education officials were only Friday verifying the equipment following revelations about the company.
In the case of the $223 million contract, it appears at the company would do the same thing, that is, deliver the equipment following which checks would be made.
This seemed to be direct contradiction to what Minister Baksh on Thursday suggested that “the computers and accessories will have to be supplied to the Ministry before any payment is made and even in that case, all payments will not be made until the Ministry of Education is satisfied with the quality of the products.”
But the Minister’s statement was different from what was said to bidders in an addendum to the bid documents for the supply of the computers to 110 schools. The bidders were told that the winning contractor would have to deliver the computers to the schools in question and not to the Ministry of Education.
Each of the schools is slated to receive 20 desktop computers, a server, 11 UPS, 11 surge protectors, one printer and one projector. It is when the computers are delivered to schools that tests and inspections of items will have to be carried out, as the addendum to the bid documents suggest.
Meanwhile, the Working People’s Alliance (WPA) yesterday said the recent revelations by Kaieteur News show that with each passing day “our country continues to suffer more and more from the soiled hands of this government of thieves.”
Despite the exposure of scams and rackets, the WPA said there is no letting up, and instead the attempted cover-ups are becoming flimsier and more absurd.
“The latest ‘Barber Shop’ scam exposed in nauseating detail in the Kaieteur News reveals the true motive and intent behind the ‘one-laptop-per-family’ project,” the WPA statement claimed.
The party said that with the ongoing Amaila Falls/Synergy Holdings scam one would have thought the PPP/C Administration would have been careful about “its nefarious connections to its highly publicized US cronies, gangsters and fraudsters operating business shells for purposes of conniving and thieving.”
“No such thing has happened and once again taxpayers money and the Public Treasury are being raided by these shady operations and operators linked to the PPP/C Administration,” the WPA added.
The party has formed a coalition with other parties called A Partnership for National Unity and said that if elected it would ensure that such “blatant scams are subject to forensic auditing by specialists both local and overseas.”
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.

20 thoughts on “Digital Technology supplied faulty equipment to UG”

GT Gardener July 24, 2011 at 10:33 am

More skin up, Baksh yu slip showing, ….. yu sunday mo long than yu monday
Guest July 24, 2011 at 10:40 am

I would really love for if our country have new party to lead after october to get a full audit an and seize all the crooks them asset and every penny they steal
dezetante July 24, 2011 at 10:57 am

KN is bent on proving that de WATA-FAL-PAY-PUH doan tel lie…is this to certify who meck PRAF-FIT an who LASS-OUT or is it proof of ILLEGAL BUSINESS inside the MINI-STREET of legal affairs?
Norman_McLeod July 24, 2011 at 11:06 am

Digital Tech. needs to come clean – soon. If not, the PPP supporters especially should take note, and vote them out!

You can vote for my former party, but I think AFC has a much better policy layout.
1. jack s July 24, 2011 at 7:49 pm
  
  He HE..YEA we all gon vote for ur party DICTATOR..LOL
2. vatvic July 25, 2011 at 5:17 am
  
  Stupid PPP Troll
GuyaneseStarfish July 24, 2011 at 11:26 am

I had a dream last night leaving me thinking, what if we didn’t come from God’s creation or evolution… suppose we were created by extraterrestrial beings and when they took off to space, heaven, we called them God and now they’re back and working for the ministries……. controlling our minds.
rekniht July 24, 2011 at 11:27 am

u may as well shut down this forum ,, ur iron fist farce is making the forum desolate !
from ur choking of the voices of “reason” ! one of which is mine !!!!
GuyaneseStarfish July 24, 2011 at 11:27 am

I had a dream last night leaving me thinking, what if we didn’t come from God’s creation or evolution. Suppose we were created by extraterrestrial beings and when they took off to space, heaven, we called them God and now they’re back and working for the ministries……. controlling our minds.
FazalGafoor July 24, 2011 at 11:52 am

10 million for 2 x 20KVA APC UPS … Holy Crap! Why are these people in Guyana wasting their money? How can a man be allowed to rip a university off like this, an institution where there is expected to have bright people? Hello… Hello… do you folks know that you can power all your generator sets and most automobiles with water. Yep, I have tested it… there are tons of info online about this…. it is something that the huge multinational power company do not want to get popular. Hydrogen gas can be extracted from water molecules easily, and hydrogen cells can be made easily too. There are several ways to manufacture your own hydrogen gas…. Come on Guyana University, do lets these lil wishy-washy boys steal the peoples’ money…. Also, Guyana University should put a restriction on people enrolling for social programs… Do not give them government loans. There are too many people into the faculty of social sciences…. Technology students should be encouraged….
McCaully July 24, 2011 at 11:52 am

When you read of these blatant robbery taking place in this an election year in my dear country it sick one stomach to know how far and wide corruption has gone in Guyana. Can’t the people of Guyana please stand up and take back what belongs to us all notwithstanding where we (Guyanese) live, because the ordinary citizens of Guyana survive off the sweat and backs of their family and relative from overseas. So if our treasury is being robbed by the PPP/C, it indirectly affect all Guyanese around the world. Let’s unit and bring change to our beautiful country!!!
Joe Owen July 24, 2011 at 12:30 pm

I have to start a business relationship with the government for it’s very profitable. Imagine being paid G$10 million to supply G$2.5 million worth of equipment? Or buying 2 used UPS on Ebay for G$250, 000 and being paid G$10 million. Why is the government giving away these exorbitant sums of the country’s money to party lackeys and scammers? Is there no fiscal responsibility?
ere23 July 24, 2011 at 12:59 pm

What is happening to our beloved country is simple, we have a government in power that has the country in a economic GridLock. Billions of dollars are flowing through the hands of the government via VAT, Heavy Taxes, and Alot of Funding Agencies. This Government is suppressing salaries and also taxing this suppressed salaries. So what we have is a piss poor population and a suffocating Economy. This government is causing inflation by pumping millions of dollars into contractors hands. The Economy cannot breathe because people are struggling for basic survival. My friends there will be dangerous times ahead for us, the Government is not spending on social welfare, they are not creating jobs, they are just building big structures where 60% goes back into their pockets. We should be Proud People with more Natural Resources than the entire Caribbean. Instead we have to leave our country and be treated like Dogs in other places, simply of a messed up Guyana. The Government is Breeding Corruption, Causing people to steal, HOW CAN YOU PAY A CUSTOM OFFICER WHO IS SUPPOSED TO EARN THE COUNTRY REVENUE JUST US$200 PER MONTH????? WHEN RENT IS US$200 PER MONTH.. THAT IS SO STUPID PPP.. YOU ARE CREATING THE CRIMINALS OF THIS NATION …..DOCTOR US$500 , NURSE US$200 …. TEACHER US$150 PER MONTH….WHY WHY WHY IS IT BECAUSE MAJORITY OF PPL IN THE PUBLIC SERVICE IS BLACK??? WHAT ARE THEY DOING TO THIS NATION??? WE NEED HELP…GUYANESE PEOPLE THINK FOR YOURSELVES….YOU LEAVE A RESOURCE RICH COUNTRY TO GO TO BARBADOS TO BE DEPORTED AND SPIT UPON LOCKED UP JUST BECAUSE THIS GOVERNMENT KNOWS NOTHING ABOUT RUNNING A COUNTRY..WHEN ARE WE GOING TO RISE UP???WHEN IS THIS GOING TO STOP….WHEN ARE WE GOING TO VOTE BASED ON OUTPUT..WHEN CAN WE SEE PARLIAMENT ON CHANNEL 11 ??? WHAT IS THE FUTURE OF OUR CHILDREN??? WHAT IS THE FUTURE OF GUYANA, LAND OF THE FREE.
1. Linden Maxwell July 24, 2011 at 5:25 pm
  
  Dr. Ashni Singh , Hon. Minister of Finance should call for a full investigation of all contracts issued to Krishendat Sukhu, CEO of Digital Technology contracts since 2002 to be conducted by the Auditor General Office and income tax assessment to account for his millions for such a young man to be conducted by Guyana Revenue Authority . In addition, to reviewing the tendering process that was followed since this Krishendat Sukhu may have been given contracts whilst employed at UG, which is obviously a conflict of interest.
  
  Especially, when this could be consider as a deliberate attempt to avoid the officials from the Caribbean Development Bank (CDB) from conducting due diligence.
  Since officials of CDB may have consider the recent $70M contract that was awarded by the Government of Guyana, who must have done a due diligence check and the CDB may have view this as a duplication of the process and may have been under some considerable pressure to ensure that the computers arriver in Guyana the same time that the first shipment of the $70M is expected to arrive and in time for the new school term.
  
  In addition, this could also be consider as contract splitting. Since the first $70M contract was to be paid from the Treasury but few days after a second contract for $223 million was issues to the same contractor for the same items for the same purpose but to be paid via loan from Caribbean Development Bank.
  
  It should be noted that Digital Technology was among the three bidders that tender for the one-laptop-per-family’ project and for which CCS had the most favorable and responsive bid but conveniently the Government decided to re-tender may be the Kaieteur News unsuspectingly reveals the true motive and intent behind the re-tendering for the one-laptop-per-family project after all this project cater for 90,000
  laptops at a approximate cost of US$27,000,000 ($27M) or G$5,400,000,000 ($5.4B) and Krishendat Sukhu would obviously need a lot of funds to complete and stock his Multi Complex.
  
  The Guyanese people should ask themselves the question why the reputable mainstream IT companies in Guyana such as NT Computeac, Starr Computers, GuyanaNet, Computer High Tech, etc, do not tender for Government contracts.
  1. Gt592 July 25, 2011 at 7:25 am
    
    He will not do that my friend , he know if he do that he will be going to get fire or even Murder like Mr Shaw . Guyana poor people money pass on to the friends of the president , this my option that they cannot be trust.
Sheila July 24, 2011 at 1:07 pm

BRAVO KAIETEURNEWS. I enjoy reading these revelations of the heads of Government THIEVES. Hopefully that the Guyanese people are no longer sleeping.That they are fully awake and trying to smell the COFFEE. The equipments that this fellow is importing is nothing less than condemn machines. He probable paid just to ship them to Guyana. And just imagine the amount of contracts that he is given, when reliable companies gets none.
andyycapp July 24, 2011 at 2:20 pm

Unfortunately in the face of all of these blatant high crimes, our beloved countrymen all seem to be in some form of political stupor. We continue to allow ourselves to be racially manipulated, abused and used as electoral pawns by politicians. Meanwhile, we live in poverty and despair (imagine in this 21st century we do not have a stable water and electricity system) while the small minded political gangsters amass their fortunes in the pradovilles and their off-shore bank accounts. One of the greatest ironies of Guyana’s political culture is that the very people who continue to return the government of the day back to power again and again are the ones lining up in droves at the overseas embassies, and fleeing to the the tiny islands around the caribbean looking for a better life. What idiocy!! These countries have a right to slam their doors in your faces and treat you the way the do for your stupidity!!
1. vatvic July 25, 2011 at 5:16 am
  
  So true, for instance in Nevis the natives are complaining how “those” Guyanese making babies like mad to get papers
Slimsuave July 25, 2011 at 12:02 am

For lack of vision and visionary leaders, the people perish.
There’s laxity in transparancy and accountability since
greed and self is the order of business.
GTMAX1A July 25, 2011 at 9:25 am

and the saga continues