US Judge dismisses ATN's block to US$18M ICT project
By Gitanjali Singh
Stabroek News
March 13, 2003
US Judge, Thomas Penfield Jackson last Friday dismissed Atlantic TeleNetwork's (ATN) motion to block the US$18M loan for the government's information and communications technology (ICT) project but the firm says it is considering appealing the decision.
ATN in June 2002 sought a temporary restraining order against the loan, which was denied, and it moved for a permanent injunction as well as a writ of mandamus directing Paul O'Neil, then US Secretary to the Treasury, to prohibit the use of the Inter-American Development Bank (IDB) funds for the benefit of Guyana.
In a written decision handed down on March 7, Judge Jackson found ATN lacked standing, had no statutory private cause of action to obstruct a loan by the IDB to a foreign government (even one in default of its contract with a US citizen), and failed to meet the requirements necessary to the issuance of a writ of mandamus.
The orders to dismiss were based on applications made by John W Snow and Jose A Fourquet of the US Treasury Department, the IDB and the Government of Guyana, all of whom filed motion to dismiss the case in 2002. (See details in follow up story).
The rejection of ATN case clears the way for the IDB to consider approval of the loan, which had been put on hold since June 20, 2002.
Contacted yesterday, Daniel Drosdoff, Public Relations Officer for the IDB, said the bank's lawyers were still studying the decision of Judge Jackson. He was not in a position to say when the matter would be put back before the IDB's board for consideration. The board met yesterday and the ICT loan was not on the agenda.
The US$18M loan could allow the government to revolutionise the way its services are accessed and pave the way for almost every Guyanese to have access to the internet. However, it hinges upon a competing telecommunications system being established and ATN alleged that this was in violation of its contractual exclusive rights for 20 years.
ATN in a brief statement on Monday evening announced the Judge's move to dismiss providing no detail except to say it was considering an appeal.
Prime Minister Sam Hinds, contacted for a comment, said the legal impediment to the ICT project as well as the telecommunications reform project has now been removed and he expected these projects to move forward. He was not certain when the loan application would be placed before the IDB board for approval.
But regarding the government's position on talks with ATN/GT&T to liberalise the telecommunications sector, Hinds said that that review was still to take place.
ATN had broken off advanced talks with the government last summer on giving up its monopoly during which severe concessions were made to the firm and moved to block the loan for the government, saying that project would have infringed upon its monopoly rights.
However, the move to the courts was after the company got wind of information from within the government circles suggesting that the draft memorandum of understanding agreed to by the negotiating parties did not meet with the President's approval.
Neither Sonita Jagan, General Manager of the local phone company nor Terry Holder, her deputy, could have been contacted yesterday for comment on the issue.
