THE technology ministry last night confirmed that it has seized the V-SAT telecommunications system being used by English Sports, the Montego-based Internet gambling and call centre operator, saying that the firm was using the satellite link to illegally transport international telephone calls.

The development is apparently threatening the jobs of about 400 people in Jamaica’s already badly-bruised IT sector which is facing a major deficit in employment creation and scandals over shysterism by some of its players.

“The ministry noted that the V-SAT facility that the firm utilised for their operations was dismantled and terminated as English Sports was found to be engaged in illegal by-pass and that the instrument was illegally installed,” the government said in a statement about its action on Monday.

The administration’s statement was in sharp contrast to one issued hours earlier by English Sports in which they claimed that Technology Minister Phillip Paulwell had advised their officials, even as his agents were dismantling the equipment, that the seizure should not be taking place. English Sports said they had a valid licence for their V-SAT.

“These phone calls (with Paulwell) were recorded and we currently have several copies of this conversation on tape, both audio and video,” said the statement by English Sports spokesman Michael P Harakal III.

Under the phased liberalisation of the telecommunications market nearly three years ago, Cable & Wireless Jamaica will maintain its monopoly on international communications into, and out of Jamaica for the next year, after which there can be full competition.

However, some companies, especially those involved in technology-related businesses, in the first wave of liberalisation were grandfathered to keep the V-SAT systems for which they had been granted special licences to operate, but the government undertook to aggressively police against by-passing the C&W network.

In fact, the Spectrum Management Agency (formerly the Post and Telegraph Department) has raided several companies and seized equipment said to be used in illegal by-pass.

It moved against English Sports on Monday, causing the firm to close its operations in Montego Bay as well as those in Kingston of its associated company, Jamaica Call Centre Ltd (JCCL).

But the technology ministry, in last night’s statement, suggested that the loss of the V-SAT system should not prevent English Sports and Jamaica Call Centre from operating.

“The ministry is advised that Jamaica Digiport stands ready to provide competitively priced, legal telecommunications services to English Sports,” the ministry said.

English Sports and JCCL, owned by a pair of Egyptian-American brothers, Dennis and Joseph Atiyeh, are no strangers to controversy.

Two years ago, the American government, which frowns on efforts to escape its tough gaming regulations by operating Internet-based gambling from off-shore locations, brought charges of illegal gambling and money laundering against the Atiyehs. The US government eventually lost the case, as happened with a number of similar suits.

At the same time, the Opposition Jamaica Labour Party came out against Government lending the Atiyehs $64 million from its now controversial Intec fund to help establish the JCCL. In the face of the criticism, the Government announced that it was changing the approach, lending the money directly to the Factories Corporation of Jamaica which set up the facility to be leased to the JCCL.

Yesterday, English Sports not only rapped the Government’s action to seize their equipment, but claimed the action jeopardised business. They also said that they were caught in a Jamaican political cross-fire in an election year and in the face of the NetServ scandal in which Paul Pereira’s IT company has made off with an estimated $200 million of Intec Fund cash.

“We have become a political target due to many reasons, but most obviously the NetServ scandal…” the company said. “As this will be an election year, the media has been having a field day with contact centres in general and particularly (English Sports and JCCL), due to our having a great deal of start challenges which caused very slow growth.”

The company said that their operations now employed over 400 people and that at the time when the Spectrum Management agents and the police moved in, they actually had a potential client on the premises and were about start two new projects this week and one next week.

“If the pilots were successful, the programme would add 600 new jobs,” they said. “We will most likely have to cancel all four projects.”

Despite saying that they had ordered back to the United States managers and their relations, English Sports said that they intended to resume operations soon.

“We are currently working on resolving these matters in a timely, accurate and professional manner,” the company said. “However, we have not been met with the same sense of urgency or professional courtesy from our Jamaican counterparts or Jamaican Government. We have been in Jamaica for over seven years and plan to stay for many more years to come.”