The Opposition People’s Progressive Party has accused Minister of Public Telecommunications, Cathy Hughes of impropriety after her company Videomega productions was awarded a contract by the Department of Energy.
Hughes in a statement last night said that she has not been involved in the “day to day” running of the company since 2015 and had been unaware of the award prior to press releases yesterday by PPP/C Chief Whip Gail Teixeira and Edward Layne.
In a video statement yesterday Teixeira said that the company established by Hughes in 1993 had been granted a multi-million dollar contract with the Department to create brochures as well as television and radio advertisements.
Though the company’s website still lists Hughes as Managing Director and Executive Producer the Minister last night said that in May 2015 upon assuming the role of Minister of Tourism she “relinquished any involvement in the day to day running of Videomega Productions.”
She said that she was completely unaware of the award of any contract to Videomega Productions but has since been informed that “the contract valued at $832,200 was for the production of three sixty second television Public Service Announcements.”
“The award of this contract was never brought to my attention neither would I have been aware of it in the normal conduct of the Company’s business,” the minister stressed, explaining that following her assumption of a ministerial post Russell Lancaster was appointed Manager and became responsible for the operations of the company.
It is not clear what procurement process was used to award the contract as efforts to reach Lancaster via Videomega’s office proved futile as did efforts to reach him via his mobile. Attempts were also made to reach Head of the Department of Energy Mark Bynoe whose phone was turned off.
Beverly Alert, who is also listed as a member of the Videomega team, explained that she has not been part of the company since May 2015 when she left to take up posts within the APNU+AFC government.
“I hold no shares nor am I connected with Videomega in any form,” she said in response to questions on the issue.
While Hughes says she has not been involved in the day to day running of Videomega, any award of a contract by a government agency to a company owned by a senior minister would be seen as a major problem because of the appearance of influence.
In a statement last night, the Ministry of the Presidency said “The Ministry wishes to make it pellucid that the Department of Energy contracted Video-mega Productions to develop three (3) sixty second television and radio Public Service Announcements (PSAs) at a cost of eight hundred and thirty-two thousand (G$832,000), as part of its public awareness and sensitization campaign with regards to the Co-operative Republic of Guyana’s emerging oil and gas sector.
“It should be emphasized that the Department of Energy worked closely with the Ministry’s Procurement Unit in finalizing this contract.
“The Ministry of the Presidency wishes to make it clear that the Department of Energy is not engaged in any “incestuous relationship” as indicated by Ms. Teixeira and has from its inception, worked in compliance with all rules and regulations relative to the procurement of goods and services.
“That one would speculate that the contract relates to campaign material for the APNU-AFC Coalition for elections is outrageous and completely baseless. The material being developed is solely in keeping with the furtherance of the mandate of the Department of Energy”.
Teixeira has likened this contract to that of the Cen-tral Housing and Planning Authority (CH&PA) awarded to the husband of Minister Valerie Adams-Yearwood. Adams-Yearwood is the Minister with responsibility for housing and directly supervises the CH&PA.
Godfrey Yearwood was according to CH&PA’s Chief Executive Officer Lelon Saul awarded a contract in 2017 to construct five units as part of the agency’s “Housing Solutions and Beyond project.”
Though the Minister has repeatedly refused to comment on the issue Saul told reporters last Friday that it was “certainly” a conflict of interest for the minister’s spouse to be issued a contract by the agency she supervises. He further suggested that it might be necessary for the board to review its procedure for award of contracts.
“The award of contracts is above my level (but) I think the Board should review that based on recommendations coming from the agency,” the CEO said.
