Former NCN Chief Execu-tive Officer Mohammed Sattaur has declined to comment on the findings of the probe into the state broadcaster which found that that he and Programme Manager Martin Goolsarran attempted to cover-up financial irregularities by pressuring staff to prepare backdated invoices, among other issues.
Chairman of the NCN Board Prem Misir also would not comment when contacted saying that he was overseas at the time and did not have all the documentation with him. He, however, indicated that he is willing to speak on the matter when he returns.
On Tuesday, AFC leader Khemraj Ramjattan has renewed his call for a full probe of following the revelations in a leaked report which also recommended that legal action be taken to recoup revenue lost.
Ramjattan said that Sattaur and Goolsarran should also face the courts. “I think they should be charged. The police should come in and do a thorough investigation,” the attorney said, adding that the duo ought to be made an example so as to deter culprits at other state institutions. “The investigation should still go on. This is but a slap on the wrist,” he said referring to the penalties imposed on the officials. Goolsarran was suspended for eight weeks by the NCN Board while Sattaur resigned.
When contacted on Thursday for comment on the report, Sattaur said that he will “definitely not” respond. “I will not be responding to anything that has been published,” he stressed.
A leaked copy of the report, given to Stabroek News by Ramjattan, who said it was given to him by a high-ranking government official said that Goolsarran, in the presence of Sattaur, in June, requested that the finance manager prepare an invoice to be dated January 2012 to cover production costs for the GT&T Jingle and Song competition for the period November 2011 to January 2012. The amount of the invoice was for $3.6 million but the employee refused to prepare the invoice “as no Job Order was given to her for these activities.” The employee told the investigators, Parmesar Chartered Accountants, that Sattaur and Goolsarran made “a few requests” to her to prepare the invoice.
After the finance manager refused, the report said, Sattaur and Goolsarran instructed another employee to prepare a Job Order for the GT&T competition production services and forward it to the Finance Department for the preparation of an invoice. This employee also refused to carry out the instruction. “The two employees reported that they felt that it was unethical to prepare a Job Order that should have been prepared in the normal course of business since January 2012 and submitted to the Finance Department for invoicing in June 2012,” the report said.
‘Personal account’
It also said that a copy of an invoice dated 10 January 2012 with Martin Goolsarran’s home address was obtained. This invoice was addressed to GT&T and represent production costs for the Jingle and Song Competition for November 2, 2011 to January 6, 2012. The report pointed out that the invoice amount was $3,620,000 which was the same amount and services that the finance manager was asked to prepare the invoice for in June 2012 and backdate to January 2012.
The report said that Goolsarran, in a written statement, indicated that NCN was unable to provide to GT&T the full production services due to the requirements for National Election coverage and it was decided with the approval of Sattaur that part of the production work would be subcontracted to Hits and Jams Entertain-ment Television (HJTV). No written contract was prepared to evidence the arrangement with HJTV, the report said. “Based on this arrangement NCN would have earned $3,620,000 and HJTV would have earned $3,930,000 for production services,” it said. The report also said that the NCN records indicated that it has 51 cameras and there was no indication of staff limitation.
Goolsarran admitted that he received on two occasions, amounts totalling $3,930,000 in December 2011 from GT&T for production services. “These amounts were deposited in his personal bank account. He claimed that the $3,930,000 was paid to HJTV on two occasions for their services,” the report said. It noted that a receipt dated January 21, 2012 from HJTV was presented with details of two payments made by cash in December 2011 and January 2012 for a total of $3,930,000. “The details on the receipt referred to recording and editing of “GT&T Guyana Star 2011 Competition” which is a separate activity from GT&T Jingle and Song Competition,” the report said.
It said that Kerwin Bollers of HJTV indicated to the Board that he did not prepare this receipt but only signed it. Further the Board indicated that Bollers reported that the amount he received from Goolsarran for production work on the GT&T Jingle and Song Competition was less than $3,000,000, the report said. It pointed out that the GT&T Guyana Star Competition was held in August and September 2011 and NCN billed GT&T separately for advertisement relating to this competition.
“Up to the time of this investigation NCN has not issued any invoice to GT&T for production services provided for the GT&T Jingle and Song Competition,” the report which was dated June 21, said. It stated that in discussions with the Board, Wanita Huburn confirmed that two payments for $3,930,000 were paid to Goolsarran based on his personal invoice while a third payment was pending for an invoice submitted by Goolsarran. “It was determined that an amount of $3,620,000 is due for production services for the GT&T’s Jingle and Song Competition,” the report said.
It declared that it would appear that Goolsarran submitted a personal invoice to GT&T for $3,620,000 in January 2012 “but in June 2012 was attempting to have an NCN invoice be prepared and backdated to January 2012, to cover up the personal invoice which was not settled by GT&T.” Further, the report said, Sattaur was assisting Goolsarran in having the invoice prepared by the Finance Department.
The report said that based on the evidence gathered, it could be concluded that Sattaur and Goolsarran failed in carrying out their duties diligently and professionally. “They have knowingly breached the Company’s internal control procedures. Their actions in dealing with the GT&T Jingle and Song Competition clearly demonstrated conflict of interest,” the report said while adding that their conduct tarnished the reputation of NCN and its management.
‘No record’
Further, a number of functions of other staff/department were usurped by the two officers, the report said, adding, among other things, that they entered into arrangement with GT&T for the Jingle and Song Competition without a written agreement and further, this event was not referred to the ‘Rates and Special Events Committee,’ which has responsibility for such events. The two officials also executed a subcontract with HJTV without a written agreement. “In the absence of the written agreement, terms, conditions, rights and obligations of NCN and GT&T cannot be determined with certainty,” the report said. It pointed out too that all rates for the GT&T Jingle and Song Competition were determined by Goolsarran but this function should have been carried out by the ‘Rates and Special Events Committee’. Further there is no record to show how the various rates for the broadcasting and production charged to GT&T were determined, the report said.
Among other things, the report said that Goolsarran submitted personal invoices to GT&T for production services provided by NCN, collected payments of $3,930,000 and deposited same into his personal bank account while reliability of payments of $3,930,000 to HJTV for production services could not be reliably verified.
It said that the Production and Technical Log Book which records production activities has not been kept up-to-date and consequently, it was not possible to determine the actual hours of production provided for GT&T Jingle and Song Competition. Further there is no evidence that the Production and Technical Log Book is being reviewed by the Production Manager. Also there is no evidence that the Production and Technical Log Book is reviewed to ensure that all production services are invoiced to the relevant customers, the report said, adding that a number of other logs were not kept. “The Internal Audit Department did not carry out an audit in the area of revenue, production services and control over equipment. The Internal Auditor who was only in place for about one year was focusing his efforts on bringing the fixed assets register up to date to enable the conclusion of the statutory audit for 2009 and 2010. He was also working on issues raised in the 2004 to 2008 Auditor’s report. This exercise is still incomplete,” the report said.
It outlined several recommendations which the investigators said that the Board should consider and take appropriate actions to safeguard the interest and integrity of NCN. It urged a review of the overall performance of Sattaur to determine his continuity as CEO of NCN. “He has failed to execute his duties and responsibilities in a professional manner and has condoned breaches of the Company’s internal control procedures. He has also demonstrated poor leadership qualities which are necessary to manage an organisation like NCN,” the report said.
It added that the conduct of Goolsarran “clearly demonstrates his unsuitability for the role of Production Manager.” It urged the Board to obtain written confirmation from GT&T for all amounts paid and to whom for all services provided by NCN for the Jingle and Song Competition and “for all amounts paid to any individual, take necessary actions, including legal, to recover loss of revenue.”
It said that all amounts due by GT&T to NCN for the Jingle and Song Competition should be determined and necessary action taken to collect the amount. The report also urged the Board to take necessary actions to ensure compliance with system of internal control and procedures in place. It said that the Board should commission a total review of the company systems and procedures to determine weaknesses and areas for improvement which are necessary to safeguard its assets and operations.
‘Rampant’
Meantime, Ramjattan said that he believes that the terms of reference for the investigation was deliberately narrow and the police should do a wide ranging investigation. He said that staffers should be questioned with regards to whether this type of thing has happened before. The terms of reference were to specifically investigate allegations of financial irregularity occurring from September 2011-February 2012 and with regards to the account for the GT&T ‘Jingle and Song’ competition.
Ramjattan said that it is a blessing that there are people brave enough in this country who can come forward with documentation and evidence to expose corruption. He appealed to other high-ranking officials to inform politicians who they can trust when they are aware of wrongdoing. This is a positive, progressive step in the good governance lobby and anti-corruption crusade, he said.
The AFC leader said that the report shows an abuse of the systems at NCN and the absence of discipline by officials who by virtue of their example should not do as they did there. He also pointed out that Board members too have not been keeping an eye on the activities at NCN particularly when a recent Attorney-General report came out against the asset register and about the status of equipment yet they were demanding taxpayers’ money.
Ramjattan said that it was only by cutting the allocation for NCN in the budget that the irregularities became visible. He said that he is certain that similar offences are occurring in other state institutions such as NICIL and the Office of the President. “It is definitely rampant all over the place,” he asserted adding that this is the larger justification for the cuts being made.
The board of NCN launched an investigation in June into suspected financial irregularities at the network and Goolsarran was sent on administrative leave at the time. The probe is over, Misir has said.
