Feeling “betrayed,” Yog Mahadeo yesterday resigned as Chief Executive Officer (CEO) of the Guyana Telephone & Telegraph Company (GT&T) after he was advised of a “lapse of internal control” that occurred under his watch.
Repeatedly quizzed about the “lapse” at an impromptu news briefing at the Pegasus Hotel, Mahadeo skirted around the questions and said that the company should be asked about the irregularities that occurred during his time at the helm of the company.
“We had a board meeting because we were awaiting the report and I had signalled to everyone [that] if those reports were to be adverse, I [would] take the necessary steps and leave. So I am unable to say what those lapses were. However, I am sure the board and new management would be available to answer,” Mahadeo said when probed.
The company was also very vague in the announcement of Mahadeo’s resignation, but stated that Chief Financial Officer (CFO) Royston Rachpaul and three others have been replaced. Rachpaul as well as internal auditor Sachin Persaud, and Management Information Systems (MIS) staffers Karmachand and Richard Sukdeo were all sent on leave earlier this month in order facilitate an audit by the company’s parent company Atlantic Tele Network (ATN).
In a release, the company yesterday announced that former CEOs Major General (rtd) Joe Singh and Sonita Jagan will take over the running of the company. The company said Singh, who has been appointed Chairman, will assume the role of acting CEO and Jagan has been named acting CFO.
“In the course of a recent review, we found that the actions of some individuals have been inconsistent with our high ethical standards regarding internal business practices and conflicts of interest. Accordingly, the board has decided that it is in the best interest of the company to make some changes in personnel,” Paul Bowerstock, a member of GT&T’s Board was quoted as saying. He said Rachpaul had been replaced along with three staff reporting to him.
“Because this failure to adhere to the highest standards of conduct took place on his watch, CEO Yog Mahadeo has determined it is in the best interest of the company for him to resign his position,” Bowerstock said. “We respect Yog’s decision and appreciate the many achievements of the company under his leadership. Over the next couple of weeks, Yog has offered to help ensure that a smooth transition takes place,” he said.
Rachpaul had earlier told this newspaper that there was nothing strange about him and the others being asked to go on leave, but Stabroek News was told that it was the first time this was done. “I was really shocked at reports in the press,” Rachpaul had said, and he maintained that proceeding on leave did not indicate that they were involved in anything untoward. Efforts to contact him yesterday proved futile.
This newspaper understands that Rachpaul and the three others reporting to him had been working on the company’s popular 10/10 softball competition—one of the promotions Mahadeo said caused his eyes “to mist over” when he reflected on it—in which massive irregularities were uncovered by the company’s financial investigators.
‘Hurt’
Announcing his resignation, Mahadeo said he would remain at the company for the next couple of weeks not just to hand over to the new management but also to learn more about what had happened.
“From my perspective I would be eager to learn and I am sure the new management of GT&T will be eager to share that with me so that we can all look at what really has taken place,” he told the media.
Further pressed on the issue, Mahadeo said that since he has tendered his resignation, he could no longer speak for the company and rather it is the new management and the board who should give details.
He pointed out that he served as the CFO for three years under Singh and as an accountant he knew that “whenever there is a lapse of internal control one has to take responsibility….”
Pointedly asked whether the lapses had to be of a financial nature, Mahadeo said he did not know but the board had taken the matter seriously. He denied that the board asked him to resign, adding that before the audit started he had indicated that if there were any lapses of any significant nature he would have resigned “and I stood to my word.”
Asked how he felt that Rachpaul, who was described as protégé, and others were fired, Mahadeo said he viewed many of his employees as family and he felt “hurt to have heard that there were lapses of internal control… and at this stage I am tremendously hurt that it happened under my watch.”
He said the fact that the four were dismissed would demonstrate that the lapses involved them and he felt “betrayed.
“I cannot take responsibility for other people’s actions. What I am saying is that it happened under my watch and as leader I need to take note of that and cognisance of that and step aside… I know all over the world as long as there is some degree of uncertainty or wrongdoing or anything leaders would step aside,” he said.
He said the audit by the parent company was not a “special one” since it happened every year and senior personnel would usually take a hands-off approach, but added that during the audit the company’s work did not stop. While he was aware that interviews were held with large contractors of the company and promoters by the audit team, he was not aware of the details.
He dismissed reports that the company had not seen returns on the massive amount of spending on promotions, stating that the company’s revenue had subscribers had grown.
“I would say with all earnestness that [the promotions] have paid off,” Mahadeo said, adding that if he was given a chance to continue he would have done so, even though he had earlier indicated that he would have left the company at the end of this year.
He said he is not fearful of criminal charges being filed against him and he was not aware whether authorities from the US are investigating GT&T.
Mahadeo’s resignation came hours after he was elected chairman of the Private Sector Commission (PSC). Asked about his future at the commission, he said the GT&T board had signalled that it was happy for him to represent the company on the commission. However, it is a decision for the PSC to make, he said.
‘Lovers and haters
Meanwhile, Mahadeo read a statement to the media which he said he had read to staff members of the telephone company, mere hours before. In it, he said while they had taken the company to new heights, all good things come to an end.
“While I had paid careful attention to the entire company’s image and built our public profile, the inner controls were slipping,” Mahadeo said in his statement.
He said that through the years he had built a lot of bridges for the company, crossed swords, argued and created. “I thank you all; thanks to those who have loved and loved to hate,” he said.
Mahadeo trumpeted GT&T’s competitions and promotions and, listing his accomplishments as CEO, he boasted that under his watch the company’s data subscribers grew from 5,000 to 21,000. He added that he opened doors to customers who never thought they would be with GT&T.
“In the process, I have experienced immense joy in giving out a lot of tokens and t-shirts and caps and other things to people… in need,” he said.
He is holding his head high, he said, as he steps aside and would continue to look out for GT&T and be proud of any new achievement.
The former CEO said having worked at top speed for 12 to 14 hours per day for the last two years, he now looks forward to once more “going for evening walks at the seawall, going to mandir, going to the supermarket and finally spending some time with Yoga.”
