NFMU did not bill Quark for using Cable spectrum for five years
…claims law does not provide a method to calculate such fees
After being cornered by forensic auditors from Ram and McRae, the National Frequency Management Unit
Forensic Auditor,
Chris Ram
(NFMU) headed by Valmiki Sigh attempted to justify why it has not billed a cable television operator for five years. The entity proffered the excuse that the law does not provide a method to calculate such fees.
Concerned with this state of affairs at the company, the forensic auditors recalled the genesis of this matter and made strict recommendations.
The auditors highlighted that in December 2010, former President Bharrat Jagdeo granted Quark Inc. (Broadband)/ Movie Star permission to broadcast television signals on the 2.5 GHz band, which allows for cable TV operations and internet-related services. Quark Inc. is owned and managed by Brian Yong.
The auditors said that they are not aware, nor were they provided with any evidence that the President had any such authority. Additionally, since 2010, the auditors said that Quark Inc. also known as Movie Star has been providing cable TV and wireless internet services.
The forensic auditing team from Ram and McRae stated that since the NFMU did not have an application form tailored to cable TV operators, Quark Inc. wrote the NFMU requesting the use of frequency spectrum, but complete information was not provided to complete the application process.
Also, reviews and enquiries by the auditors revealed that Quark Inc. did not pay any spectrum fees to the National Frequency Management Unit for the 2.5 GHz band used to broadcast for the period 2010 to 2015.
It was explained that the reason the NFMU did not invoice Quark Inc. was due to the fact that the law does not
Brian Yong, Owner of Quark Inc.
provide a method to calculate fees for cable TV operators.
To compound the matter, the auditors emphasized that since Quark Inc. has made no payment to the Guyana National Broadcasting Authority (GNBA), it is not a licenced broadcaster.
Notwithstanding the fact that the entity has debts to the NFMU dating back to 2004 for spectrum used to provide broadband internet services, the auditors said that NFMU has failed to issue any invoice to that company for spectrum usage since May 23, 2007.
Management estimates an amount of $29 million is owed by Quark Inc. to the NFMU. It was also explained to the auditors that management at NFMU was awaiting a determination of the fee structure by the relevant Minister.
The forensic auditors stated that the amount owed is substantial and recommends that immediate steps be taken to determine and recover this money.