May 06, 2015 News
Government’s claim that Dax Contracting Services would be repairing the Brazil fibre optic cable at no cost to
taxpayers, is false and misleading.
The government has granted Faisal ‘Dax’ Mohamed hundreds of millions of dollars in duty free concessions on luxury vehicles.
In the agreement signed March 16, Dax is allowed to import two SUVs and three 4-door pickups every three years for the life of the 25-year agreement. This contract has a 15-year extension clause that is attached to the 25-year contract.
Two high-end SUVs (Mercedes or Lexus 570, or BMW) and three 4-door pick-ups attract some $250M in duty and taxes.
This represents a hefty payment to Dax Contracting Services, according to one contractor.
Dax, if he desires, could sell them and rake in a very tidy profit.
This is just one of the many concessions that Government allowed Dax Contracting Services in the agreement that it says comes at no cost to taxpayers.
A fortnight ago, Dr Roger Luncheon, the chief Government spokesman, announced that he signed an agreement with Dax Contracting Services Limited of Eccles, East Bank Demerara, to repair the damaged Brazilian fibre optic cable.
He said that the repairs would come at no cost to Government.
The deal with Dax Contracting has raised anger as Government is on record for spending at least US$100M on what it calls the Information Communication Technology (ICT) project.
This project includes the Brazil fibre optic cable that runs from Lethem to
Georgetown, construction of a wireless and terrestrial network from Moleson Creek, Corentyne, to Anna Regina, Essequibo Coast, and the distribution of 90,000 laptops to poor families.
The contract with Dax Contracting is seen as a giveaway with serious questions being raised as to who Dax is fronting for.
The ICT project has been under scrutiny for a number of years after evidence emerged that a plan, under the direction of former President Bharrat Jagdeo, was hatched to take over the telecoms industry.
He directed under draft telecoms legislations that three companies be granted Operators Licence once new liberalizations laws come into place. Those companies included Quark Communication, E-Networks and Global Technology.
All three companies have directors that are close to Jagdeo, including his niece, Sabrina Singh, and buddy friend, Dr. Ranjisinghi ‘Bobby’ Ramroop along with Winston Brassington, whose privatization of state assets has raised glaring questions.
In December, Head of the Presidential Secretariat, Dr. Roger Luncheon, admitted that the project, headed by Alexei Ramotar, was in trouble, and talks were underway with a local contractor and a consortium to resurrect it.
The contract reveals that Dax will enjoy unlimited benefits, as well as uncontrolled usage of the cable and every aspect of the US$100 million ICT project.
The agreement is for the repair, use and maintenance of the fibre optic cable from Brazil.
Government spokesman, Dr Roger Luncheon, said that the Brazil cable has 12 pairs of fibre. Dax was granted a few for his exclusive use.
Government also granted tax exemptions, incentives, tax holidays and remissions.
Dax will use and maintain the said fibre optic cable, repeater stations and equipment for the 40-year duration of the contract.
He will also have access to and approval for use of the Government of Guyana-owned fibre optic structure equipment including road access, and access to poles.
”The Government of Guyana will provide Dax Contracting Services with the necessary support, according to the law, in obtaining licences to transmit and receive data via the fibre optic cable.
When contacted recently by this newspaper for a comment, the contractor, Faisal ‘Dax’ Mohamed said, “Hey, hey listen, you can go and f***k yourself.” He hung up the phone immediately after.
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