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News
COLIN JAMES Observer correspondent  
October 13, 2004

Digicel defends its bid for Antiguan cell company amid allegations of bribery

ST JOHN’S, Antigua – Jamaica-based Digicel is facing a credibility test after its controversial bid to buy Antigua and Barbuda’s state-owned cellular company.

The Irish-owned regional telecoms company has been accused of giving gifts to a senior Antiguan government advisor who along with an ambassador-at-large, has been suspended for allegedly making improper contact with the tenders board, the entity considering bids for the sale of the mobile arm of the state-run utilities company.

Seamus Lynch, Digicel’s outgoing chief executive officer, has denied any wrong-doing by his company, noting that its actions were always “open and transparent”.

Senior advisor to the minister of communications Dean Jonas and ambassador-at-large Dr Isaac Newton were suspended last month after communications minister Wilmoth Daniel said they met with the tenders board in an attempt to influence the members to accept Digicel’s bid.

Jonas, who is the former public relations officer of the governing United Progressive Party (UPP); and Newton, who helped the UPP with its campaign that won the March 23 general elections, have denied the allegations.

Jonas is accused of negotiating with Digicel, the sponsorship of desks and chairs for a private primary school owned by his wife and himself.

He has not responded to the allegation, but Lynch confirmed that his company’s sponsor of the furniture was not in any way a bribe.

The government’s decision to suspend the two officials, he adds, should not affect Digicel’s bid, because his company “is not underhanded in any of the actions it’s engaged in”.

And despite negative publicity surrounding the issue, Digicel said Tuesday it will pursue its bid to buy APUA PCS, which has the largest number of customers in Antigua, but is undercapitalised, as well as in need of equipment and trained staff.

Lynch said the allegations surrounding Jonas and Newton should not be linked to Digicel’s bid.

“At no stage would we try to influence a procedure,” Lynch said. He insists that the other four bidders – which include Cable & Wireless and AT&T Wireless – could not sustain their bids.

“If you look at the other bidders that are out there for APUA PCS I would suggest that they are not creditable. They are not creditable on the basis of market competition and on the basis that they have no funding or finance in place,” he added.

Lynch said APUA PCS needs an injection of US$15 million to bring it up to standard, plus 50 new workers.

Digicel placed a bid 16 months ago to purchase the Antiguan entity, and in April of this year, following the change of government, had shaken hands with the minister of communications Wilmoth Daniel on a purchase agreement in principle.

Afterwards, he said, the government opted to put the sale of APUA PCS out to tender.

Jonas said the other allegations of trying to influence the bid process were “completely baseless, malicious, grounded upon lies and innuendo and carefully orchestrated to destroy (his) good reputation”.

He said the decision to suspend him was “precipitous” and a “complete disregard for due process and procedural fairness”.

Newton said he would welcome a “formal investigation” opened to the public when he “will be able to demonstrate that (my) appearance before tenders board was completely above board and devoid of any sinister or corrupt intent”.

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