Broadcast Authority taking steps to recoup monies − Chairman
M owed by E-Networks and Quark Inc
The Guyana National Broadcasting Authority (GNBA) Chairman Leonard Craig has outlined that plans are
GNBA Chairman Leonard Craig
afoot to ensure all defaulters clear off their outstanding debts to the entity and noted that the Authority has already begun taking these steps.
A forensic audit, conducted by the accounting firm Ram and McRae had found that the National Frequency Management Unit (NFMU) and the GNBA are owed millions from broadcasters, the most glaring of the defaulters being E-Networks and Quark (Movie Star) Inc. These two cable service providers reportedly owe $60 million in broadcasting fees.
The published audit report highlighted that E-Networks owes $31 million while Quark Inc owes $29 million. In light of the revelations, it was recommended that immediate steps be taken to determine and recover the full amount owed.
According to Craig, while the NFMU is autonomous from the GNBA, they are sister organisations and he will be speaking to the Managing Director of the NFMU, who also sits on the Broadcast Authority Board to persuade him to “collect all outstanding fees before moving forward because we cannot move forward when all of these outstanding payments are still owed.”
As it pertains to the GNBA, which umbrellas Radio, Television and Cable, he said: “All fees however, which are owed to the Broadcast Authority, we will and we have already begun to take steps to collect the outstanding monies from all those who owe the Broadcast Authority from 2013 to this date.”
Craig had already stated in the media that every licenced holder will have to reapply to the GNBA and NFMU, and had also cautioned broadcasters that their payment history can affect the decision of the GNBA to grant licences in the future: “That will be something we will have to take into consideration.”
He posited in a telephone interview with Guyana Times: “In the issuance of licences we must consider a person’s payment history, because in any case they require both licences to operate, they require an NFMU licence and a Broadcast Authority licence.”
Monitoring and Compliance
Craig also spoke of preventing a recurrence of the breaches, and illegalities that were unearthed by the audit, which highlighted that both E-Networks and Quark Communications did not comply with the Standard Operating Procedures (SOPs).
The audit report outlined that since its establishment in April 2004 to provide wireless Internet service, the NFMU had to issue warnings four times to E-Networks during the period April 4, 2004 to February 18, 2007, for operating telecommunications equipment to provide Internet and television service without ownership of the relevant licences.
“Throughout the period…E-Networks ignored the requests for compliance from the NFMU and did not properly apply for a Post and Telegraph Licence until December 2007,” the report stated, while adding: “No action was taken to ensure compliance and no payments were made to the NFMU until December 4, 2007.”
It was further highlighted that the company provided wireless Internet services to their customers without being licensed to do so during 2004-2007 and was broadcasting cable TV without ownership of a broadcasting licence during 2006-2012.
As it relates to Quark Inc, Ram and McRae disclosed that they discovered the company has outstanding debts to the NFMU dating back to 2004 for spectrum used to provide broadband Internet services, however at the same time it was found that the unit failed to issue any invoice to the company for spectrum usage since May 23, 2007.
According to the GNBA Chairman in order to prevent a reoccurrence of what transpired, the Broadcast Authority is putting several measures in place. One of those measures includes an expanded monitoring and compliance department.
That department, he noted, would be responsible for ensuring persons comply with the rules and it will also be recommending sanctions to the board, “so all those who do not comply…we will not hesitate to take all necessary action that is within our remit” said Craig.
