Minister suspected of being major financier - ‘Barber Shop’ computer scandal grows…
JULY 25, 2011 | BY KNEWS | FILED UNDER NEWS

The issue of the contract to Digital Technology has taken yet another interesting turn. The company is registered as Digital Technology Group of Companies with Krishendat Sukhu as its Chief Executive Officer. Documents from the Deeds Registry stated that the company was registered on June 2, 2009. Yesterday, information that Sukhu was the front man for three investors came to the fore. The three all came out of the University of Guyana, two of them graduating from the same class. They later became lecturers at the University and are said to have maintained a strong bond. One of them is now a Minister of Government.

Last week after queries arose about the contracts worth some $300 million for the supply of computers to the Ministry of Education, Minister of Education Shaik Baksh and Finance Minister Dr Ashni Singh hastily called a press conference to denounce this newspaper. Minister Baksh announced that Digital Technology was “not a fly by night company” since the Education Ministry was doing business with it since 2002. It did not matter to Minister Baksh that the company only came into existence some seven years later. But even before Digital Technology became a registered company, instructions came from the Ministry of Finance that Ministries should no longer requisition computers, that all requisitions would be made by the Ministry of Finance.

Three years ago, Raymond Khan, General Manager of the Centre for Information Technology, spearheaded a project at the Ministry of Finance. Terrence Sukhu was the major supplier for the computer components for that project. There was no known tender for that contract. Khan until then had spearheaded the University of Guyana Computer programme. The Ministry of Legal Affairs was one of the entities that received such an order and subsequently received two computers. The Ministry later found that maintenance was an issue. It could not acquire components months after the receipt of the computer.

Digital Technology has been supplying all the computer requirements for the Education Ministry and for just about every Government Ministry. Information is that the involvement of one of the owners is in a senior Government position and is facilitating such contracts. Meanwhile, approaches are to be made to Education Minister Baksh for details of all the contracts supplied to Digital Technology. On Thursday, he said that Digital Technology had received 38 contracts over the past nine years. Not all were for the Education Ministry but Minister Baksh had close knowledge of all these 38 contracts awarded to Digital Technology. He was not even a Minister of Education in 2002.

And Digital Technology has not been known for its maintenance programme. 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 sent. What the company supplied was two 20KVA APC UPS – a different brand and 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. 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.

Source

Gerhard, this is one of the nastiest allegation of corruption ever in the history in Guyana. I glad Ramotar is the Candidate since at least he a million time better than the Minista who is the silent patna in this financial rape.

ITEC. Who get ITEC scholarship. Sukhu, the technical people at Ministry of Education and the silent money man.

quote:

Originally posted by Sase Singh:
Gerhard, this is one of the nastiest allegation of corruption ever in the history in Guyana. I glad Ramotar is the Candidate since at least he a million time better than the Minista who is the silent patna in this financial rape.

ITEC. Who get ITEC scholarship. Sukhu, the technical people at Ministry of Education and the silent money man.

I will be addressing this at this coming Wednesday's press conference.

Digital Technology given contracts before it existed – Education Ministry confirms - ‘Barber shop’ computer contract scandal widens
JULY 26, 2011 | BY KNEWS | FILED UNDER NEWS


The document from the Registrar of Business Names that shows Digital Technology was first registered as a business in 2003, but was given a contract in 2002 – even before it was registered as an ordinary business.

In another attempt to defend the award of multi-million-dollar contracts to Digital Technology – the company’s head office address which was found to be a Brooklyn barber shop – the Minister of Education has in effect admitted the entity was given contracts even before it existed. And the Education Ministry wants this newspaper to name the Minister who is said to be a major financier of the company. Editor-in-chief Adam Harris said that this newspaper is prepared to do that once Minister Shaik Baksh supplies full details of the 38 contracts that were awarded to Digital Technology.

Yesterday, in an apparent forced statement forwarded to the media houses by the Ministry, the Registrar of Business Names confirmed that Digital Technology was registered as a business on November 27, 2003, with Krishendat Sukhu and Steve Morgan, as proprietors. Minister Baksh last Thursday said that the company received government contracts as far back as 2002. This suggested that Digital Technology received contracts even before it existed, whether as a sole trader or as fully incorporated company. The Minister of Education is yet to explain how this is so, and to provide the full list of 38 contracts given to the company since then. The last registration of Digital Technology as a business was in June 2008. Digital Technology was incorporated as a full company, with directors and shareholders in June 2009.

Being registered as a business and being registered as a company carries completely different requirements. When persons register a business they were not required to submit any sort of financial reports. And that was the position of Digital Technology from 2003 to June, 2009. During that same period, according to Baksh, it received multi-million-dollar contracts. When it became a company, under the Companies Act, it was required to submit Annual Returns, Balance Sheet, profit and Loss Accounts and Auditors Reports. This is what the company failed to do in 2010 and was threatened with being struck off the register of companies. Even when it became a company, no checks were done on its position – according to Minister Baksh – when it was granted a $223 million contract.

A reported “due diligence” was conducted by the Caribbean Development Bank (CDB) before the company was granted a $70 million contract. It was that same CDB position, Baksh said, that was used to grant the company the $223 million contract that is being funded by Guyanese taxpayers. The company, which is thought to be financed by a minister, was awarded contracts when it was in default of the Companies Act. It supplied faulty equipment to the University of Guyana, and of its CEO breached his obligation to serve the University after his return from India training.

The Ministry yesterday disputed claims by this newspaper that Digital Technology was paid $10M to supply two UPS to the University of Guyana (Turkeyen Campus) that were damaged by floods in 2005. The Ministry claims that the two pieces of equipment were replaced by the manufacturer as both had a three-year warranty and the equipment are now working well. Sources did say that it was not Digital Technology that helped the University receive the replacement UPS. They said that after repeated efforts by the University’s Information Technology Department were met with repeated excuses by Digital Technology, frustration boiled over and another company was called in to assess the process. It was only then that the UPS were replaced.

Thirdly, the Ministry of Legal Affairs Permanent Secretary Edward Wills has confirmed that the two computers supplied to the ministry are working well and there have been no reports of any defects as reported by the Kaieteur News. Finance Secretary Nirmal Rehaka has also confirmed that all contracts awarded to Digital Technology have followed all applicable tender procedures. Further, the Ministry of Education quoted the Head of the University of Guyana Information Technology Department (Turkeyen Campus), Raymond Khan, and the Director of the Berbice Campus Professor Daizal Samad, as saying that the computers supplied to the university campuses are of good quality and are working well.

A senior University source had told Kaieteur News that one of the reasons why the University stopped by buying from the company directly and started to source from Dell was because of faulty equipment. The Ministry however continued to source computers for the University from Digital Technology, but the equipment were not checked upon delivery to ensure they complied with the required specifications. 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.

On the equipment supplied to the Ministry of Legal Affairs, the Education Ministry quoted the Permanent Secretary Edward Wills as saying the there have been no reports of any defects. The Ministry of Education quoted Finance Secretary Nirmal Rekha as saying that all contracts awarded to Digital Technology have followed all applicable tender procedures. The Ministry, which has jumped to defend Digital Technology and the award of contracts to that company, restated that the National Procurement and Tender Administration Board is the authority responsible for the evaluation and the award of contracts.

Tenders are opened publicly, evaluated by a committee appointed by the board which makes reports and recommendations, and an award is finally made by the board. At a press conference Minister Baksh called with Minister of Finance Ashni Singh, they both said that the Board does not go checking on the information submitted by bidders.

Source

quote:

Tenders are opened publicly, evaluated by a committee appointed by the board which makes reports and recommendations, and an award is finally made by the board. At a press conference Minister Baksh called with Minister of Finance Ashni Singh, they both said that the Board does not go checking on the information submitted by bidders.

The most corrupt tendering process I have ever heard of.

quote:

Originally posted by Mr.T:

quote:

Tenders are opened publicly, evaluated by a committee appointed by the board which makes reports and recommendations, and an award is finally made by the board. At a press conference Minister Baksh called with Minister of Finance Ashni Singh, they both said that the Board does not go checking on the information submitted by bidders.

The most corrupt tendering process I have ever heard of.

Why you sound so surprise???

quote:

Originally posted by baseman:

quote:

Originally posted by Mr.T:

quote:

Tenders are opened publicly, evaluated by a committee appointed by the board which makes reports and recommendations, and an award is finally made by the board. At a press conference Minister Baksh called with Minister of Finance Ashni Singh, they both said that the Board does not go checking on the information submitted by bidders.

The most corrupt tendering process I have ever heard of.

Why you sound so surprise???

The proper tendering process involves looking into whether each bidder is able to deliver at the price and the time scale in the contract, and the work is done properly.

quote:

Originally posted by Mr.T:

quote:

Originally posted by baseman:
The most corrupt tendering process I have ever heard of.

Why you sound so surprise???

The proper tendering process involves looking into whether each bidder is able to deliver at the price and the time scale in the contract, and the work is done properly.[/QUOTE]
I understand that, I have evaluated tenders before. My question, why are you surpeised that the GoG runs a corrupted process?

The reason I am surprised is because albert and friends regularly tell us how much money is allocated or has been spent to improve Guyana, but then it turns out that there are no ways or means to find out if any of the money was actually spent on doing the job the tender was for.

quote:

Originally posted by Mr.T:
The reason I am surprised is because albert and friends regularly tell us how much money is allocated or has been spent to improve Guyana, but then it turns out that there are no ways or means to find out if any of the money was actually spent on doing the job the tender was for.

And you surprise! Why you think the WB holding back on funds bai.

THis is how they build up the oligarchy. I wonder what was the kick-back tax here? 20%?

quote:

Originally posted by TK_REDUX:
I wonder what was the kick-back tax here? 20%?

Is that in total, or just for Jagdeo?

Minister Baksh lied - Education Ministry approved $223M computer contract
JULY 27, 2011 | BY KNEWS | FILED UNDER NEWS


Minister Shaik Baksh

On Monday, the Ministry of Education issued the following statement. “The National Procurement and Tender Administration Board is the authority responsible for the evaluation and the award of contracts. Tenders are opened publicly, evaluated by a committee appointed by the board which makes reports and recommendations, and an award is finally made by the board. “The Ministry of Education reiterates for the umpteenth time that it does not award or grant contracts.” This statement issued by the Education Ministry on Monday was based on reports about a $223M contract awarded to Digital Technology for the supply of 1,400 desktop computers to the Ministry of Education.

On Thursday, Minister Shaik Baksh, at a Press Conference that was televised, said that his Ministry does not award contracts. He explained that contracts are awarded by the tender board after scrutiny by an Evaluation Committee. Indeed, tenders are assessed by the Tender Board but the evaluation of these tenders is done in most cases by an Evaluation Committee which is headed by the Permanent Secretary in the particular Ministry for which the contract is awarded, in this case Minister Baksh did not explain this. When the Education Ministry sought the tender for the computers and after the tender board approved the various tenders, the Ministry of Education itself then became involved in the assessment. In this case, Permanent Secretary in the Education Ministry, Pulandar Kandhi, was the head of the Assessment Committee for the computer contracts. And his office is separated from the Minister’s by a wall and a door.

Asked to comment on the role of the Permanent Secretary, a critic said that this is similar to a man seeking to build a house and allows his son to select the contractor that the father identifies. The tender is opened and the son is asked to evaluate all the bids and to pick the contractor. It is clear that the Ministry of Education was the deciding entity in the award of the $223M contract, the critic said.

When asked about due diligence, Minister Baksh said that there was no need to do that since the Caribbean Development Bank (CDB) had already done one a few weeks prior for the $70M contract that was awarded. But the $223M contract was awarded before the $70M contract by the Caribbean Development Bank. This means Minister Baksh lied.

Minister Baksh last Thursday said that the company, Digital Technology, received government contracts as far back as 2002. This suggested that Digital Technology received contracts even before it existed, whether as a sole trader or as fully incorporated company. The Minister of Education is yet to explain how this is so, and to provide the full list of 38 contracts given to the company since then. The last registration of Digital Technology as a business was in June 2008. Digital Technology was incorporated as a full company, with directors and shareholders in June 2009.

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. 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. In that same year, 2010, the company was given a $37 million contract to supply computers and accessories to the Ministry of Finance.

Source

I will be dealing with this at the AFC press conference in 45 mins from now, and then I am headed up to for an AFC bottomhouse meeting in Blairmont.

quote:

Originally posted by Gerhard Ramsaroop:

Minister Shaik Baksh

You can tell when a man is lying. He looks sideways when his lips are moving. Why are his eyes so red /pink?

Come on, how you know he was not addressing somone on the side. What does red/pink eyes have to do with anything. Maybe he gatt allergies.

Mr T the World Bank estimated a 20% kick-back tax. You see not all investors will be willing to pay. So they find these "business men" aka friends/families of the party who will. Meanwhile, this leads to inefficiency and stagnation...the oligarchs get cash to deposit under secret accounts in India...the masses grind it out in poverty after 19 years of PPP rule.

quote:

Originally posted by TK_REDUX:
Mr T the World Bank estimated a 20% kick-back tax. You see not all investors will be willing to pay. So they find these "business men" aka friends/families of the party who will. Meanwhile, this leads to inefficiency and stagnation...the oligarchs get cash to deposit under secret accounts in India...the masses grind it out in poverty after 19 years of PPP rule.

U know that India story. True True. The pharmaceutical man is the money washer and that local bank opens the numbered accounts for them. What is the name of the bank again - Bank xx xxxxxx

Baksh refuses to list 38 contracts to Digital Technology - ‘Barber shop’ computer contract scandal
JULY 28, 2011 | BY KNEWS | FILED UNDER NEWS


Shaik Baksh

Education Minister Shaik Baksh has refused to list the 38 contracts handed to Digital Technology, after it was found that his own admission confirms that the company was given contracts even before it existed. At a press conference yesterday at the Office of the President, Baksh accused Kaieteur of a blatant lie when this newspaper reported that Digital Technology only became a company in 2009, and therefore did not meet the three-year requirement of the tender process to be awarded the multi-million dollar computer contracts it was given.

Kaieteur News has already made public the certificate which proves this. The company later explained that it operated as a sole proprietor entity since 2003. The Education Ministry has also sought to prove this by a statement from the Registrar of Business Names. Kaieteur News has not denied this, but has sought to explain the difference between the company being a regular business and a company. With a regular business, the sort of compliance required of the tender process is not required of ordinary businesses, whereas with a company, an array of financial documents need to be lodged. Digital Technology was found to be in default of the Companies Act in 2010, the same year it also received Government contracts.

The Education Minister last Thursday said that he was in possession of the 38 contracts since 2002, but when asked yesterday why he wasn’t prepared to disclose them, he said this newspaper could get that information by writing a letter to the National Procurement and Tender Board. Permanent Secretary in the Education Ministry, Pulandar Kandhi, was the head of the Assessment Committee for the computer contracts. And his office is separated from the Minister’s by a wall and a door.

Baksh said that the National Procurement and Tender Administration Board is the authority responsible for the evaluation and the awarding of contracts and as such, decides whom they want to put to head any assessment committee. Baksh also made an issue of when the contracts were awarded.
When Minister Baksh was asked about due diligence last Thursday, Minister Baksh said that there was no need to do that since the Caribbean Development Bank (CDB) had already conducted due diligence prior for the $70M contract that was awarded. This newspaper has stated that the $223M contract was awarded before the $70M contract by the Caribbean Development Bank. Baksh sought to dispute this. He said that it was the $70 million contract to Digital Technology that was awarded before. According to him, this was done on April 20, 2011. He said the tender board awarded the $223 million contract on July 12, 2011.

However, taking the Minister’s word for granted, the contracts actually never came into effect in the order Minister Baksh suggested. In fact, it was the $223 million contract that was signed and handed over to Digital Technology on July 13 – one day after Baksh claimed it was awarded by the tender board. The US$70 million contract was only announced on July 18, when other contracts were signed. Digital Technology in Guyana is in fact listed as the Caribbean and Latin America Office of a company that goes by the name Digital Waves Technology Inc., which has as its Head Office this address: 3154 Fulton Street, Brooklyn, NY 11208. Checks by this newspaper revealed that this address housed a company called Assets Realty Inc. a few months ago and is today the “Antonio and Martin Barber Shop.”

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.

Source

This issue represents on one of the main reasons many ethical entrepreneurs refuse to invest in Guyana.


The playing field is not level.