GRi BEF News Ghana
06 - 09 - 2000
Barred
internet service providers battle it out with NCA
Barred internet service providers battle it out with NCA
Accra
(Greater Accra) 06 September 2000
The Police
Panthers Unit is guarding the premises of the National Communications Authority
(NCA) as workers of some Internet service providers demand that the NCA comply
with a court order and release equipment seized from their employers.
The
equipment of Intercom Data Network (IDN), Tin-Ifa Ghana Limited, Jesad
Intercontinental and Mac Telecom were seized on July 11 and six of their
directors were handed over to the Serious Fraud Office (SFO) for prosecution.
The workers
said the NCA is refusing to obey an order by an Accra Regional Tribunal on
August 15, to release the equipment, which were seized after the four companies
were accused of illegally operating Voice Over Internet Protocol (VOIP).
The
tribunal chaired by Mr. Justice B. O. Tetteh gave the order in a case in which
the SFO filed an application seeking an order from the tribunal for the
confirmation of the freezing of the assets and bank accounts of the four
companies and their six directors.
The
tribunal ordered the release of the equipment subject to the removal of parts,
which make it possible for them to illegally operate the VOIP system.
It also
ordered that the respondents whose bank accounts were frozen by the SFO should
be allowed to withdraw up to the cedi equivalent of 25,000 US dollars for
recurrent and miscellaneous expenditure.
The
tribunal noted that granting the application would bring hardship to the
investors. It said the ruling was a humanitarian way out of a complex situation
and emphasised the need to build investor confidence in an area, which was
mushrooming.
The SFO
accused the respondents of installing special equipment and software that by-pass
the Ghana Telecom gateway thereby making international call look like local
calls.
The
companies said in their defence that the Internet is a multi-media package that
arrives with sound, pictures and writing and that they do not operate telephone
services.
They said
the equipment were installed with the authority of the NCA and they have not
contravened their regulations.
The
affected companies accused Dr Ben Adu, Chief Executive Officer of Engineering
Systems and Services Limited (ESS), who is also a consultant to NCA, of
crippling their companies to the advantage of his newly established internet
company.
Sources
close to the NCA said ESS was licensed by the NCA in June, this year to operate
as an Internet service provider in collaboration with Connexsat, a subsidiary
of the Ghana National Petroleum Corporation (GNPC).
The
Internet technology to be deployed will be provided by Interactive
Intelligence, a United States company.
The source
disclosed that this was after ESS had applied to the NCA to be given
consultancy services to clamp down on illegal activities of all Internet
service providers.
They were
to be paid a fee of 25 per cent of whatever monies that would be retrieved
after successful prosecution of the companies and their foreign collaborators.
The NCA,
however, settled on 10 per cent and also agreed on a consultancy fee of 100
dollars an hour for ESS for the monitoring of illegal telecommunication
activity and the establishment of a fraud control unit for the NCA.
When the
GNA contacted Mr. J. K. Gyimah, Acting Director-General of the NCA, he declined
to comment, saying it has not been his policy to go to press but would issue a
statement after any publication.
On the
release of the equipment he said they could go back to the court to get them
released.
Mr. Adu in
his reaction admitted having established an Internet company but denied that he
was deliberately crippling the others.
He cited
bigger companies like Network Computer Systems (NCS) and Africa On Line, which,
he said, are doing genuine business and therefore, have no problems.
He also
confirmed that he provided the consultancy services to track down the
illegalities in Internet services but did not get the 25 per cent he wanted.
Mr. Adu
declined to comment on other issues raised after he was called by Mr. Gyimah in
the middle of the press interview and said that the issue was an NCA affair,
which must be handled by the Authority.
In an
interview with the GNA, Mr. Francis Quartey, a Director of IDN said the sudden
closure of the company affected 850 subscribers.
Those
hardly hit include the Food and Agriculture Organisation, which supports 250
diplomats and operates its pay roll system for 53 countries from its Ghana
office.
Others are
the Canadian International Development Agency (CIDA), Ghana Airways, World
Vision International, Golden Tulip Hotel and two Internet cafes.
Mr. Quartey
said IDN was able to reduce Internet access fees from 65 dollars to 25 dollars
a month while it also provided one-fifth of the total revenue of the Ghana
Telecom Exchange at Achimota.
GRi…/