Netbooks being procured under the One Laptop Per Family (OLPF) project are being purchased at a unit cost of US$295 ($60,770) per instrument and not $295,000, Minister within the Finance Ministry Jennifer Webster told the National Assembly yesterday.
On Tuesday, Webster had told the National Assembly that each laptop was being purchased at “a quite competitive” price of $295,000 (around US$1,430), creating an uproar in the House. The National Assembly was at the time considering the 2011 estimates of expenditure, having resolved itself into the Committee of Supply.
However, yesterday Webster told the House that she had made a mistake when she announced that the laptops were “quite competitive” by saying the price and installation costs amounted to $295,000 per instrument. In a statement to the House, Webster said: “Mr. Speaker, it would be recalled that a question was asked about the unit cost of the laptops. I now wish to clarify that that budget assumes a unit cost of US$295 per laptop, and not $295,000 as previously stated in error.”
She added, “Indeed, it would further be recalled that I elaborated clearly in this House yesterday that the budget provides a total of $1.8 billion for the procurement of laptops and that 27,000 laptops will be procured this year. Simple arithmetic would confirm that this implies an average cost of just over $60,000 per laptop.” At this point, opposition members heckled the minister, while saying that she had “boldly declared the [wrong] cost yesterday [Tuesday]” but was now saying it was simple mathematics.
She said too that contrary to some media reports, “the laptops are being procured in accordance with applicable procedures and rules. Questions had been raised on Tuesday about the procurement process, with the minister providing answers which were deemed contradictory by one opposition member.
Responding to a question from PNCR-1G MP Deborah Backer, Webster said the $1.8B budgeted would meet the cost of the 27,000 Lenovo laptops to be procured this year. She noted that this is a phased project that runs for four years.
However, responding to another question from AFC MP Sheila Holder, Webster said that the laptops are being procured through a competitive tender process and some of the funding for the project is being provided by China.
But Backer said that Webster had given two apparently conflicting answers and she pointed out that the Minister had cited a cost but then later said that there was a competitive tender process.
Yesterday, Webster said that the $2.5B of funds sourced from China is meant to finance another ICT related project. “I wish to further clarify that the sum of $2.5 billion of specific financing sourced from China is meant to finance the component of the ICT project which pertains to the construction of wireless and terrestrial networking systems from Moleson Creek to Anna Regina,” she said.
Speaking to Stabroek News following Webster’s statement, PNCR-1G MP Shadow Finance Minister Volda Lawrence said that the question about cost appeared to have caught the minister by surprise. She said the minister offered a figure but due to the reaction of members of the House and the public had to revisit and retract her answer.
Lawrence said that while Webster’s apology had been accepted, it was not the minister’s role to cast blame on the media since they had merely reported utterances she had made in response to specific questions.
Lawrence said that there are still a number of questions which remain unanswered. Apart from the cost, she said there were outstanding issues related to the specific model of computers being purchased and the tendering process. “We were told that the $1.8B subsequently would be going out to tender but yet they had all these computers to start distribution,” Lawrence said. “We know that there are persons already here in Guyana; entities who have been given the go ahead to sell them these computers. These computers have been in the country since last year. John Public is aware of these things,” she added.
“It’s time that the Minister and Office of the President come clean on these things,” Lawrence said. She noted that the PNCR-1G will continue to seek answers on the project through the avenues provided by the National Assembly.
She also emphasized that her party applauds the initiative but said that value for money is key. “Everybody applauds giving a laptop. It is not a bad gesture. But we want to ensure that we get our money’s worth and that whatever is the cost of it, that is the cost we are paying,” she said.
Questioned yesterday, one Information Technology expert told Stabroek News that the US$295 seemed more in keeping with the price range for a Lenovo Netbook. The expert added that the model of netbook would have an impact on price.
The expert said too that there were still many issues relating about the initiative, including the important question as to where exactly the computers were being sourced from and the guarantee being given, to be answered.
President Bharrat Jagdeo launched the OLPF initiative two Fridays ago at the International Conference Centre, with over 100 families slated to be the first beneficiaries. At the launch, Jagdeo said the government had invested some US$9 million this year to kick-start the project and added that his administration is lobbying for a grant from the Chinese government to acquire additional computers.
Under the OLPF initiative, 90,000 laptops are expected to be given to poor families.
