Videomega responds to Kaieteur News reporting on Cathy Hughes contracts

Mar 08, 2021 Letters

Dear Editor
I would like to refute the statements made in an article published in the Kaieteur News of Sunday March 7, 2021 entitled, “Videomega’s “clarification” contradicts Hughes’ claims of playing no role in $6M contracts award.”
After submitting a letter to the Editor on Saturday March 6, 2021, I received a phone call from a young lady saying that she was requesting some clarification of the letter from the Editor of Kaieteur News, asking me about the ownership of the Videomega. The question that was asked was, whether the company was still owned by Catherine Hughes and I said that it was not.
The caller further asked if there was any documentation to support same and I replied that I would clarify that and let her know on Monday.
In the article published in the Kaieteur News, the writer who is not identified says that I said that ownership had been transferred to me, a question that was never asked and to which I gave no such comment.
The information about company ownership rests in the public domain and could easily have been checked by any competent journalist, and this again makes me reiterate my disappointment at the shoddy journalism that is being practiced by some members of the media.
The article continues on to mention the amounts paid to Videomega, without ever mentioning that Videomega was merely the conduit for those funds to be transferred to the media houses sans the 15% commission that normally accrues for such services.
As stated in the letter, of the $6 million mentioned, $5,679,639 went to the print media alone; Kaieteur News – $1,951,912; Stabroek News – $ 1,328, 948; Chronicle – $2,075,643; Guyana Times – $341,136. There were also placements in the electronic media – TV and Radio, which would have taken the figure even higher.
As such, I would request that the publication issue a retraction of said statement, publish my letter in its entirety and this response as well, since I would hate to think that we have now resorted to the peddling of falsehoods to sell newspapers.
With Regards
Russell Lancaster
Managing Director, Videomega
Editor’s Note. Kaieteur New stands by its reporting on this issue. Mr. Lancaster indicated that ownership was passed on to him, when contacted, and committed to providing evidence of same after consulting with Ms. Hughes. No [other] public domain information about the transfer of ownership for Videomega, a private company, from Ms. Hughes exists, nor has been communicated prior to the explanation offered by Mr. Lancaster.
Indeed, when contacted last week with regard to establishing current ownership of the company, Ms. Hughes did not herself respond.
With regard to his claim that the article does not refer to his claim that the company acted as a conduit for government funds from a ministry under Ms. Hughes’ control, our article clearly states: “Lancaster stated that Videomega merely acted as an advertising agency for Hughes’ Ministry adding that ‘it is a well-established fact’ that advertising agencies receive a 15 percent commission for ad placements and that is what Videomega would have received.
At the time however, during the Granger administration, the Department of Public Information was responsible for the placement of government ads. Additionally, the records provided also indicate that the services provided by Videomega did not only cover placement, but also some aspects of production.”
This paper stands ready to publish any credible information on the ownership of Videomega at the time that Ms. Hughes occupied public office, including – as we asked – when the company was purported to have changed hands and to whom.

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