US$2.4 million a year, that's how much the government pays the International Bank of Miami, in U.S. dollars, to service an Intelco debt. But the debt is supposed to be a rental fee for telecom services Intelco provides to government, rental which that government nicely converts to U.S. and pays straight to the IBOM to service one of Intelco's loans.
And payments are very current; as we've reported, on January third of this year, government paid another $1.2 million. While objectionable, it wouldn't be that bad if they were paying for something. Well, tonight, 7NEWS has confirmed that they are paying for nothing.
7NEWS has obtained a September 2005 letter from Senior Financial Advisor Joe Waight to the PUC in which he informs chairman Dr. Gilly Canton that, "the GOB is receiving no telecommunications services from Intelco, nor is there any...agreement with Intelco for the provision of telecommunications services." _No services, but the $4.8 million annual payments continue, and in fact, will do so for the next two years when the loan will be retired.
The loan was a 5 year loan, and three years have been completed. Government received service for less than three years. And why was Waight writing Canton? Well, two days after the Waight letter, on September 15, 2005, Canton wrote to Intelco canceling their telecommunication license. 7NEWS has also obtained that letter in which Canton explains that the cancellation was due because Intelco breached the provisions of that license by: ceasing to carry on business, failed to pay licens3e fees, unable to pay its debts, and failed to roll out its network as described in the license.
