Russell Lancaster, the manager of the communications and production company owned by Minister of Public Telecommunications Cathy Hughes, says he was personally approached by the Department of Energy (DoE) concerning some work for the agency and in turn, asked that it be transferred to the company.
The veteran artist and producer/broadcaster on Tuesday night sought to absolve Hughes from any blame that saw the company, Videomega Productions, receiving $832,200 from the DoE for work, saying she knew nothing of it.
“I was contacted by the department, and informed that based on my experience and knowledge of the industry, they would like to get an example of the kind of work that could be provided and it was I that informed them that I was now managing Videomega and would like the work to be contracted to the company as opposed to me personally,” Lancaster said in a statement issued to the press.
Hughes on Tuesday 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 it being made public by PPP/C Chief Whip Gail Teixeira and Edward Layne the same day.
“Minister Hughes was completely unaware of this as she has had no involvement with the company’s operations since assuming the post of Minister,” Lancaster said in his statement yesterday.
Hughes was on Tuesday accused of impropriety by the opposition after Video-mega Productions was awarded the contract by the DoE.
However, though the company’s website still lists Hughes as Managing Director and Executive Producer, she informed 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 was subsequently informed of “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, Lancaster was appointed Manager and became responsible for the operations of the company.
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.
It is also unclear if she declared the company to the Integrity Commission. The Integrity Commission holds confidential the declarations received.
Last year, Hughes had said that she has sought legal advice on the disclosure and compliance requirements set out in the Laws of Guyana.
“On the day of July 4, 2018, I submitted my declaration of assets and interest to the Integrity Com-mission,” Hughes said in October.
Her statement followed reports of a possible conflict of interest in her role as a sitting minister and her husband Nigel Hughes being a partner in the Hughes, Fields & Stoby law firm, which established an office in Houston, Texas to attract oil industry clients.
Minister Hughes was contacted yesterday by this newspaper and said that she would say nothing more than the statement she issued. She was asked if Videomega Productions was declared to the Integrity Commission and she said that she was very busy “in a meeting” and hung up.
While he did not name a person or say the date he was contacted, Lancaster said that he was “approached by the department.”
Suitable
“I was informed that they were in the process of reviewing the work of a number of service providers in an effort to find a fit suitable for the department, since this was a burgeoning industry and they wanted to be sure that any such provider selected would be able to represent the oil and gas sector adequately. As such, they asked that we produce three 60-second TV Public Service Advertisements in an effort to determine our suitability. The cost we charged was $832,200,” he explained.
“We were never asked to provide any other service and we want to be pellucid in this regard. We would like to state that we are deeply disturbed by the allegations being peddled and consider that this does not augur well for the maintenance of a stable environment when statements are made in the public domain by members of the press and sitting parliamentarians without any attempt at verification,” he added.
Efforts to contact head of the DoE, Dr Mark Bynoe, proved futile as an email sent was unanswered and a staff at the agency told this newspaper, via phone, that “the Director is unable to take the call at this time.”
However, the Ministry of the Presidency, in a statement on Tuesday evening 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,” it added.
It is unclear why the DoE did not advertise for providers of this service.
