HR experts weigh in on URCA controversy
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
The Bahamas Human Resources Development Association (BHRDA) yesterday raised concerns about the appointment of a foreign HR consultant by the Utilities Regulation and Competition Authority (URCA) as controversy heightened over the matter.
As has been widely reported by The Nassau Guardian, the questions being raised surround URCA’s engagement of Marsha Lewis, who heads LCI Inc. in Barbados, which she formed not long before landing the contract. Lewis is a former executive of Cable and Wireless Communications’ Caribbean operations, as is URCA’s current CEO Usman Saadat who introduced his former colleague to URCA in 2009 when he was the regulatory body’s director of policy and regulation.
URCA Chairman Wayne Aranha has admitted that the agency did not advertise the position locally. On Saturday, the prime minister said URCA broke the rules in failing to do so.
Last year, Saadat forwarded his resume to Lewis for vetting when he applied for the CEO position, Aranha acknowledged. All candidates were required to send their resumes to her.
The association said yesterday it noted with interest that URCA did not release any information about the scope of works for the consultancy job.
“It would be useful to know whether the use of Mrs. Lewis’s firm required specialized HR knowledge and expertise that Bahamian HR professionals may not have had,” BHRDA said in a press release.
“We are advised that comments made by URCA indicated satisfaction with LCI Inc.’s work which included writing job descriptions and formulating a performance appraisal tool. It should be noted therefore that local HR professionals possess expertise in all major functional and operational areas of human resources and business, the least of which is creating job descriptions and performance appraisal tools.
“What is also disturbing to the association is the fact that Mrs. Lewis’ LinkedIn site states that LCI Inc. contracted another HR professional to perform quite a number of the duties that her company was engaged to do. BHRDA’s position is that an experienced Bahamian HR professional could just have easily performed the core HR functions to standards of excellence and similarly outsource some functions if technical telecommunications expertise was lacking in a particular area.”
The association posed several questions to Saadat: While the post was not advertised, did URCA explore the availability of local/Bahamian HR consultants before hiring one externally? Did URCA contact any member/executive of the BHRDA or other representative HR bodies to assist with locating an experienced HR consultant? Was a RFP (request for proposal) published/provided at the time of LCI’s engagement?
The association asked several other questions: Since public attention was drawn to this matter, does URCA still have a contract with Lewis? Will the scope of work now be made public and does URCA have an HR manager presently?
BHRDA said it has formally addressed this issue with Immigration and Labour Department officials and those discussions appear to confirm that there are opportunities to better manage and monitor the process of issuing work permits as well as better monitoring— and more importantly—leveraging expatriate labor in The Bahamas.
“BHRDA sees this as an opportunity to advise the Bahamian public that there are many experienced HR professionals in The Bahamas, many of whom have worked in Fortune 500 and other companies in the U.S. and the U.K. Many of these professionals have also studied abroad and achieved international qualifications and designations which set them apart from others in the profession,” the association said.
The firestorm over Lewis’ engagement has emerged as URCA considers a bid by Cable and Wireless Communications to purchase 51 percent of the Bahamas Telecommunications Company. Lewis’ husband, Philip Lewis, is currently CWC’s vice president of business development as has been pointed out by The Nassau Guardian on several occasions.
The association said it takes no position on either the issue of privatization or the role of Cable and Wireless or URCA’s ability to perform its regulatory functions to the highest standards.
“The association does question the process used to employ the foreign HR consultancy firm hired by URCA,” the press statement said.
“We are pleased by the prime minister’s comments on the matter in yesterday’s Guardian where he stated that ‘all positions should be advertised locally.’ The association believes this is an opportunity for policymakers to ensure that Bahamian laws set out clear guidelines under which fair competition will prevail, as well as enforcement of these laws. It is BHRDA’s hope that the public debate and BHRDA’s questions on this matter cause organizations like ours to be consulted in changing and creating policy in The Bahamas.”
The press release pointed out that BHRDA is a national, non-profit organization and an affiliate of the Society for Human Resource Management (SHRM). BHRDA’s main objective is to provide a forum for human resources and other business professionals to enhance their technical knowledge and skills and advance the cause of workers generally.
The association is headed by Annette Cash and has several vice presidents: Cheryl Bain, Marisa Mason-Smith, Rachel Rolle and Villiemae Black. Its secretary is Chrislyn Benjamin.
Aranha, the URCA chairman, said last week that Lewis’ time with URCA is coming to an end because she has completed the tasks she was hired to carry out. He indicated that it has nothing to do with the controversy, and said URCA plans to engage a local HR professional to complete some work.
3/8/2011
thenassauguardian
An International Caribbean Online Log about the news and opinions in the Americas and World. This Caribbean Blog of global reach and appeal is maintained by Bahamian Blogger - Dennis Dames with all readers and subscribers in mind.
Showing posts with label Usman Saadat. Show all posts
Showing posts with label Usman Saadat. Show all posts
Wednesday, March 9, 2011
Tuesday, March 8, 2011
Bahamas: Cable and Wireless Communications (CWC) and the Utilities Regulation and Competition Authority (URCA)... What's The Connection? (Part-2)
CWC and the URCA connection Pt 2
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
Stunning admissions
Chairman of the Utilities Regulation and Competition Authority Wayne Aranha made several stunning admissions a few days ago: URCA never advertised locally for the human resources consultancy position now being filled by a foreigner.
That foreigner, Marsha Lewis, happens to be a former colleague of URCA’s CEO Usman Saadat, who introduced her to the regulatory body in 2009 when he was director of policy and regulation.
Another stunning admission made by Aranha was that Saadat, when he applied for the CEO position last year, had to forward his resume and application for vetting to Lewis, the very woman he introduced to URCA a year earlier.
Lewis left Cable and Wireless Communications (CWC) in Barbados months before she became URCA’s consultant. She landed the consultancy position not long after she formed her company, LCI Inc.
According to URCA’s Three-Year Strategy and Annual Plan for 2011, it is spending $131,000 on HR consultancy, although it is unclear from reading that report how much of that money is being spent with LCI.
For the past two years, Lewis has collected from URCA for her services — services that Bahamian HR professionals may be capable of providing and may be available to provide.
Lewis had something though that they did not have, something that proved of inestimable worth in her landing her URCA contract: A connection to Usman Saadat.
Because the position was never advertised locally, the Bahamian professionals never got a chance.
The Department of Immigration requires positions be advertised locally before foreigners are approved for jobs.
It is also government policy to advertise locally for positions that need to be filled, noted Prime Minister Hubert Ingraham in an interview with The Nassau Guardian over the weekend.
Ingraham said bluntly that URCA broke the rules and he intends to address the matter.
“We certainly do not support that kind of thing,” the prime minister said.
“It’s a standard policy of the Government of the Bahamas that positions are advertised locally and it’s very annoying.” But he said it has to be done.
Deputy Prime Minister and Minister of Immigration Brent Symonette also told The Nassau Guardian he intends to look into the matter of how URCA was able to bring on a foreign HR consultant without advertising the position.
AN APPEARANCE OF CONFLICT
To be clear, Aranha was not yet chairman when Lewis landed the contract in August 2009. He was appointed weeks later.
But Aranha recognized that as the current chairman it is his responsibility to protect the integrity of URCA.
After National Review dug into this issue last week, Saadat had agreed to appear on the Star 106.5 FM show “Jeffrey” with Jeff Lloyd and from what we understand on the “Sawyer Report” on ZNS with Jerome Sawyer.
But somewhere along the way he and URCA’s board had a change of heart.
Instead, Aranha and URCA’s Director of Policy and Regulation Kathleen Smith made the rounds.
Aranha said there had been personal attacks on Saadat and the decision was made for him not to appear on the shows.
While on Lloyd’s show, the URCA officials acknowledged that there is an appearance of conflict given Saadat’s and Lewis’ former affiliation with CWC.
But they stressed repeatedly that there is no actual conflict.
“I think it’s important for our public to appreciate that conflicts exist all the time,” Aranha said.
“Real conflicts exist all the time, not with URCA but as a general proposition. But they are properly managed to avoid a conflict from resulting in something being crooked or improper…You deal with it by either saying you can’t do certain things or you deal with it by not attending or participating in an issue that arises.”
Aranha said when he first met Lewis in the fall of 2009 when he became chairman “she was known to be a Cable and Wireless past employee.”
“In my mind though, it was never addressed as an issue,” he said.
“But he (Saadat) did make the introduction; it’s agreed and I can understand it now that we’re looking back and assessing it and tearing it upside down.
“Clearly, the organization (URCA), bear in mind, was given a mandate: Go and run effectively, run efficiently. You have the sector policy; you have an act. We want you to report value for money and there was an immediate commencement of activities to assess the gaps in staff if there are any, to look at ways of improving the efficiency, to look at what needs to be done.”
The issue of CWC’s connection to URCA is being raised as URCA reviews the agreement between the Government of The Bahamas and CWC, which is seeking to purchase 51 percent of the Bahamas Telecommunications Company (BTC).
Both Aranha and Smith stressed that in 2009 when Saadat introduced his former CWC colleague to URCA, CWC was not a bidder in the privatization process.
But it was at least in the picture to some extent, as pointed out on several occasions by The Nassau Guardian, and confirmed in privatization documents.
CWC was eyeing the BTC opportunity, which it ended up turning down in 2009. In 2010, it was back in the picture in a major way, emerging as the long sought strategic partner for BTC.
URCA’s DEFENSE
The usually quiet URCA has had to put up a defense on these issues over the last couple weeks, led by its chairman.
The controversy even led Aranha to question whether I as the writer of these articles had an agenda and whether I had ever even spoken to the government ministers who appeared confused last week over which of them is responsible for URCA.
It was pointed out to the chairman that there are many people who have questions about all the connections to CWC, and about how Lewis was able to secure the HR contract.
As we noted in last week’s article on this issue, Lewis is married to Philip Lewis, CWC’s VP for Business Development.
Aranha said he spoke to Mrs. Lewis on a casual basis and recalled her mentioning her husband.
“But that to me was never significant…what was significant to me was on the board’s agenda early was a paper on ‘this is what we plan to do with HR in respect of training Bahamians, in respect of introducing a program to measure performance, to evaluate performance against objectives that are set for staff members so that they would be remunerated in accordance with performance and advancement would be consistent with performance,” Aranha said.
Last week, the chairman and the director of policy and regulation did not appear concerned that the HR position had not been advertised in The Bahamas.
Asked by Lloyd whether it was necessary for URCA to have a foreign HR consultant, Smith said, “LCI, which Mrs. Marsha Lewis happens to be the managing director [of], is only an advisor with respect to human resource issues to URCA.”
Lloyd pressed further: “Is there a need for a foreigner?”
He asked whether the position was ever advertised locally.
Aranha answered, “I think the answer clearly has to be [no] because if it was done through a competitive biding process the trail would have been there.
“I think the answer clearly has to be that the situation was one whereby Mr. Saadat, having worked with her before, being aware of the product, and probably having a pretty good perception of what the pay for performance system for URCA should look like, decided that maybe that was the best person to engage and having introduced her to the then CEO (Michael Symonette) he was so persuaded and I have to believe that the CEO had great respect for her too.”
When URCA advertised other positions in 2010 — including the CEO and director of policy and regulation positions — applicants were advised to forward their applications to LCI Inc. (Barbados).
As mentioned, Saadat complied. The resume was no doubt a familiar one for his former colleague in Barbados and probably came as no surprise to her.
Pressed on whether this amounted to a conflict, Aranha told The Nassau Guardian that everything relating to the hiring of the CEO was done above board.
“The decision to engage the DPR and CEO were made by the board members,” he also said on Lloyd’s show. “The board members had an opportunity to see every resume. We interviewed the finalists.
“Every other appointment has been via a competitive selection process which is absolutely required in the act for the DPR and CEO for certain…We’re trying to develop in URCA a deep bench.”
He also advised that Lewis’ work with URCA is coming to an end, not because of the firestorm surrounding her engagement, but because she has nearly completed what she was hired to do.
With all the controversy surrounding Saadat’s and Lewis’ past connections to Cable and Wireless, Lloyd asked Aranha whether industry players are likely to be concerned.
“Quite frankly, I don’t think the competitors are going to be a big issue with respect to simply Usman,” he responded.
“With respect to the HR person, the advisor, that one may be a greater issue from the perspective of Mrs. Lewis’ husband and his employer.
“With respect to the services being provided by LCI, I’m not sure they’re going to continue much longer in any event as a consultant.”
The chairman added that something had come across his desk that suggested to him that URCA was engaging a Bahamian human resources professional to carry out some work.
“I think it would be wrong to abandon plans for our HR because of the noise we’re getting,” Aranha said.
Smith, meanwhile, seemed to miss the point on the Bahamianization issue.
“Here it is we have an organization to run and we want to be efficient, we want to be effective, we want to be professional,” she said.
“If our positions are filled by Bahamians and they are qualified and they are experienced that is great, but if when we make the call for these positions and Bahamians are not available, are not qualified, are not experienced, the position still has to be filled and if it means that we have to employ foreigners, we will do so.”
In 2009, URCA never made that call when it was looking for an HR consultant.
3/7/2011
Bahamas: Cable and Wireless Communications (CWC) and the Utilities Regulation and Competition Authority (URCA)... What's The Connection? (Part-1)
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
Stunning admissions
Chairman of the Utilities Regulation and Competition Authority Wayne Aranha made several stunning admissions a few days ago: URCA never advertised locally for the human resources consultancy position now being filled by a foreigner.
That foreigner, Marsha Lewis, happens to be a former colleague of URCA’s CEO Usman Saadat, who introduced her to the regulatory body in 2009 when he was director of policy and regulation.
Another stunning admission made by Aranha was that Saadat, when he applied for the CEO position last year, had to forward his resume and application for vetting to Lewis, the very woman he introduced to URCA a year earlier.
Lewis left Cable and Wireless Communications (CWC) in Barbados months before she became URCA’s consultant. She landed the consultancy position not long after she formed her company, LCI Inc.
According to URCA’s Three-Year Strategy and Annual Plan for 2011, it is spending $131,000 on HR consultancy, although it is unclear from reading that report how much of that money is being spent with LCI.
For the past two years, Lewis has collected from URCA for her services — services that Bahamian HR professionals may be capable of providing and may be available to provide.
Lewis had something though that they did not have, something that proved of inestimable worth in her landing her URCA contract: A connection to Usman Saadat.
Because the position was never advertised locally, the Bahamian professionals never got a chance.
The Department of Immigration requires positions be advertised locally before foreigners are approved for jobs.
It is also government policy to advertise locally for positions that need to be filled, noted Prime Minister Hubert Ingraham in an interview with The Nassau Guardian over the weekend.
Ingraham said bluntly that URCA broke the rules and he intends to address the matter.
“We certainly do not support that kind of thing,” the prime minister said.
“It’s a standard policy of the Government of the Bahamas that positions are advertised locally and it’s very annoying.” But he said it has to be done.
Deputy Prime Minister and Minister of Immigration Brent Symonette also told The Nassau Guardian he intends to look into the matter of how URCA was able to bring on a foreign HR consultant without advertising the position.
AN APPEARANCE OF CONFLICT
To be clear, Aranha was not yet chairman when Lewis landed the contract in August 2009. He was appointed weeks later.
But Aranha recognized that as the current chairman it is his responsibility to protect the integrity of URCA.
After National Review dug into this issue last week, Saadat had agreed to appear on the Star 106.5 FM show “Jeffrey” with Jeff Lloyd and from what we understand on the “Sawyer Report” on ZNS with Jerome Sawyer.
But somewhere along the way he and URCA’s board had a change of heart.
Instead, Aranha and URCA’s Director of Policy and Regulation Kathleen Smith made the rounds.
Aranha said there had been personal attacks on Saadat and the decision was made for him not to appear on the shows.
While on Lloyd’s show, the URCA officials acknowledged that there is an appearance of conflict given Saadat’s and Lewis’ former affiliation with CWC.
But they stressed repeatedly that there is no actual conflict.
“I think it’s important for our public to appreciate that conflicts exist all the time,” Aranha said.
“Real conflicts exist all the time, not with URCA but as a general proposition. But they are properly managed to avoid a conflict from resulting in something being crooked or improper…You deal with it by either saying you can’t do certain things or you deal with it by not attending or participating in an issue that arises.”
Aranha said when he first met Lewis in the fall of 2009 when he became chairman “she was known to be a Cable and Wireless past employee.”
“In my mind though, it was never addressed as an issue,” he said.
“But he (Saadat) did make the introduction; it’s agreed and I can understand it now that we’re looking back and assessing it and tearing it upside down.
“Clearly, the organization (URCA), bear in mind, was given a mandate: Go and run effectively, run efficiently. You have the sector policy; you have an act. We want you to report value for money and there was an immediate commencement of activities to assess the gaps in staff if there are any, to look at ways of improving the efficiency, to look at what needs to be done.”
The issue of CWC’s connection to URCA is being raised as URCA reviews the agreement between the Government of The Bahamas and CWC, which is seeking to purchase 51 percent of the Bahamas Telecommunications Company (BTC).
Both Aranha and Smith stressed that in 2009 when Saadat introduced his former CWC colleague to URCA, CWC was not a bidder in the privatization process.
But it was at least in the picture to some extent, as pointed out on several occasions by The Nassau Guardian, and confirmed in privatization documents.
CWC was eyeing the BTC opportunity, which it ended up turning down in 2009. In 2010, it was back in the picture in a major way, emerging as the long sought strategic partner for BTC.
URCA’s DEFENSE
The usually quiet URCA has had to put up a defense on these issues over the last couple weeks, led by its chairman.
The controversy even led Aranha to question whether I as the writer of these articles had an agenda and whether I had ever even spoken to the government ministers who appeared confused last week over which of them is responsible for URCA.
It was pointed out to the chairman that there are many people who have questions about all the connections to CWC, and about how Lewis was able to secure the HR contract.
As we noted in last week’s article on this issue, Lewis is married to Philip Lewis, CWC’s VP for Business Development.
Aranha said he spoke to Mrs. Lewis on a casual basis and recalled her mentioning her husband.
“But that to me was never significant…what was significant to me was on the board’s agenda early was a paper on ‘this is what we plan to do with HR in respect of training Bahamians, in respect of introducing a program to measure performance, to evaluate performance against objectives that are set for staff members so that they would be remunerated in accordance with performance and advancement would be consistent with performance,” Aranha said.
Last week, the chairman and the director of policy and regulation did not appear concerned that the HR position had not been advertised in The Bahamas.
Asked by Lloyd whether it was necessary for URCA to have a foreign HR consultant, Smith said, “LCI, which Mrs. Marsha Lewis happens to be the managing director [of], is only an advisor with respect to human resource issues to URCA.”
Lloyd pressed further: “Is there a need for a foreigner?”
He asked whether the position was ever advertised locally.
Aranha answered, “I think the answer clearly has to be [no] because if it was done through a competitive biding process the trail would have been there.
“I think the answer clearly has to be that the situation was one whereby Mr. Saadat, having worked with her before, being aware of the product, and probably having a pretty good perception of what the pay for performance system for URCA should look like, decided that maybe that was the best person to engage and having introduced her to the then CEO (Michael Symonette) he was so persuaded and I have to believe that the CEO had great respect for her too.”
When URCA advertised other positions in 2010 — including the CEO and director of policy and regulation positions — applicants were advised to forward their applications to LCI Inc. (Barbados).
As mentioned, Saadat complied. The resume was no doubt a familiar one for his former colleague in Barbados and probably came as no surprise to her.
Pressed on whether this amounted to a conflict, Aranha told The Nassau Guardian that everything relating to the hiring of the CEO was done above board.
“The decision to engage the DPR and CEO were made by the board members,” he also said on Lloyd’s show. “The board members had an opportunity to see every resume. We interviewed the finalists.
“Every other appointment has been via a competitive selection process which is absolutely required in the act for the DPR and CEO for certain…We’re trying to develop in URCA a deep bench.”
He also advised that Lewis’ work with URCA is coming to an end, not because of the firestorm surrounding her engagement, but because she has nearly completed what she was hired to do.
With all the controversy surrounding Saadat’s and Lewis’ past connections to Cable and Wireless, Lloyd asked Aranha whether industry players are likely to be concerned.
“Quite frankly, I don’t think the competitors are going to be a big issue with respect to simply Usman,” he responded.
“With respect to the HR person, the advisor, that one may be a greater issue from the perspective of Mrs. Lewis’ husband and his employer.
“With respect to the services being provided by LCI, I’m not sure they’re going to continue much longer in any event as a consultant.”
The chairman added that something had come across his desk that suggested to him that URCA was engaging a Bahamian human resources professional to carry out some work.
“I think it would be wrong to abandon plans for our HR because of the noise we’re getting,” Aranha said.
Smith, meanwhile, seemed to miss the point on the Bahamianization issue.
“Here it is we have an organization to run and we want to be efficient, we want to be effective, we want to be professional,” she said.
“If our positions are filled by Bahamians and they are qualified and they are experienced that is great, but if when we make the call for these positions and Bahamians are not available, are not qualified, are not experienced, the position still has to be filled and if it means that we have to employ foreigners, we will do so.”
In 2009, URCA never made that call when it was looking for an HR consultant.
3/7/2011
Bahamas: Cable and Wireless Communications (CWC) and the Utilities Regulation and Competition Authority (URCA)... What's The Connection? (Part-1)
thenassauguardian
Thursday, March 3, 2011
Bahamas: Cable and Wireless Communications (CWC) and the Utilities Regulation and Competition Authority (URCA)... What's The Connection?
CWC and the URCA connection
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
A closer look
Government officials are often quick to point out that the Utilities Regulation and Competition Authority (URCA) operates independently.
URCA may be so independent that ministers aren’t quite sure which of them is responsible for the regulatory agency.
Is it Minister of State for Finance Zhivargo Laing?
He said no. That would be Deputy Prime Minister Brent Symonette.
So we contacted Symonette.
He too said no. That would be Minister of National Security Tommy Turnquest.
So we contacted him.
But Turnquest said that would be Attorney General John Delaney, who we were unable to reach.
Perhaps it is Delaney.
We are still unsure whether he would have referred us to another minister.
With URCA reviewing the pending sale of a majority interest in the Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC), in some circles questions are being raised about the affiliation former CWC executives have with the regulator.
CWC said last week that a foreign human resources consultant for URCA is a former CWC employee — not a current one as her LinkedIn profile had said. The Nassau Guardian based an initial story on what she was saying on that online professional profile.
Marsha Lewis left CWC in 2009, according to the telecoms company, and has been providing human resources consultancy to URCA since 2009.
So she is no longer with CWC.
On Friday, information came to our attention that her husband, Philip Lewis, is.
So we did some digging.
His LinkedIn profile confirmed that he is CWC Caribbean’s Vice President for Business Development.
We needed to be sure though that his LinkedIn profile was current.
So we confirmed through CWC that Mr. Lewis is still with the company.
We then sent a formal question to CWC: "Given that a former CWC executive is CEO of URCA (Usman Saadat), another former executive is the HR consultant for URCA (Marsha Lewis), and a current CWC executive (Philip Lewis) is married to the HR consultant, is CWC concerned in any way that there may be at the very least an appearance of conflict given that URCA is considering CWC's purchase of BTC?"
After The Nassau Guardian’s original story on Wednesday based on Mrs. Lewis’ LinkedIn profile — which has since been changed — CWC shot back, informing that Mrs. Lewis left the telecoms company in March 2009 to start her own business — LCI Inc., an HR consultancy.
Why URCA needed to bring in a foreign HR consultant is another issue. It was certainly the board’s prerogative.
And URCA has indicated that it is quite satisfied with Mrs. Lewis’ services.
Why Mrs. Lewis changed her profile to say she left CWC in December 2008, instead of March 2009, is not clear.
Following our inquiry on Friday about her husband, LIME CEO David Shaw approved a brief response from the company: “As the largest telecoms employer in the region CWC/LIME has been a corporate home to many people who gained experience with us and then moved on to other businesses or ventures.
“In this region, that’s not uncommon, especially in telecoms. And as for a conflict of interest, the legislation and regulatory framework were set up before we were the successful bidder.”
Indeed, The Nassau Guardian has no evidence to suggest that CWC had any advantage in the privatization discussions, but the connection to URCA is interesting to note, even if it is purely coincidental.
THE INTRODUCTION
URCA engaged LCI Inc, Mrs. Lewis’ company, in August 2009 “to provide assistance and advice in relation to URCA’s ongoing development of its human resource capacity.”
The former CWC executive was introduced to URCA by another former CWC executive — Saadat, the now CEO who at the time was URCA’s director of policy and regulation.
This was confirmed in URCA’s recent press statement.
“LCI’s selection by URCA’s then CEO was through an introduction of LCI by Mr. Saadat. URCA’s board endorsed the decision to engage LCI,” the statement said.
At the time of the approval of Lewis’ contract with the regulator, URCA pointed out, CWC was nowhere in the privatization picture.
“Public announcements by the government have disclosed that C&W did not participate in the government’s initial search for a strategic partner in the privatization of BTC, and was therefore not under consideration as a possible purchaser of BTC until 2010. From URCA’s perspective, there was no actual or perceived conflict arising out of the recruitment of Mr. Saadat or the engagement of LCI in 2009. “
The Nassau Guardian noted in a story on this issue this past Friday that CWC — though not a bidder in the BTC privatization process in 2009 — was on the government’s radar as Privatization Committee Chairman T. Baswell Donaldson advised Prime Minister Hubert Ingraham in 2009 that CWC had conducted a “lengthy” review of the opportunity to purchase 51 percent of BTC.
CWC in 2009 was one of the companies the privatization committee said it favored to bid for BTC. But CWC at the time decided not to proceed.
URCA has stressed that there is no conflict involved in the fact that two former CWC executives play key roles with the regulatory agency.
But is there an appearance of conflict?
It depends on who you ask.
The Progressive Liberal Party insists that there is.
Its chairman, Bradley Roberts, has said Saadat should not serve as CEO.
What’s clear is that URCA will not only have to provide the necessary regulatory approvals to CWC’s purchase of BTC’s majority shares, but it will also have to regulate the new company.
So the appearance of fairness and transparency is not only important in the approvals process, but in the ongoing regulation of the new BTC or whatever CWC will decide to call it.
Furthermore, URCA may need to provide repeated assurances to BTC’s competitors that CWC does not have an advantage in the regulatory process due to connections any of its key officials may have to CWC.
Competitors may get jittery at the knowledge that a former CWC CEO is now CEO of URCA, and that a current executive is married to URCA’s human resources consultant, who is a former executive of CWC.
But URCA’s Chairman Wayne Aranha said in a statement to The Nassau Guardian over the weekend the board has no concerns in this regard.
He advised that Mrs. Lewis’ company is an advisor to URCA in relation to certain human resources matters and initiatives.
“As such, Mrs. Lewis does not initiate or authorize transactions or otherwise make decisions for URCA relating to HR or any activities,” Aranha explained.
“To be clear, she has no involvement with regulatory matters and there is no issue of conflict.
“The board and I are aware of her husband’s employment. This does not concern me given the conclusion above relating to Ms. Lewis.”
USMAN SAADAT
In May 2009, Prime Minister Hubert Ingraham informed the House of Assembly that URCA — which was about to be formed — would be headed by a non-Bahamian.
Usman Saadat became URCA’s director of policy and regulation, and later its CEO, a post he currently holds.
“We have already accessed the talent of someone from outside The Bahamas who will be the policy director of URCA,” Ingraham said in the House of Assembly in 2009.
He explained then that while it was the government’s hope to populate the entity with Bahamians, it might not be realistic in the near term.
“In this early phase...we will be required to access talent that may not be available in The Bahamas,” Ingraham said.
He noted then that the policy director’s salary will also be “far in excess of anything heretofore known by public sector enterprise.”
“I would expect that some of the salaries paid to some of the professionals will be higher than what is normally paid in other areas in The Bahamas,” he said without divulging the pay scale for those appointed to URCA.
URCA’s goal, the prime minister noted, is to “have a transparent, effective, well-managed and knowledgeable entity that can act independently: that has no axes to grind; no preferences, no bias to cause the sector to be regulated in accordance with the Communications Act.”
The bill to establish URCA was passed in Parliament in 2009, as part of a package of communications bills designed to restructure the communications industry in the country.
URCA made extinct the Public Utilities Commission (PUC). URCA has far more extensive powers, authorities and duties than the PUC.
In September 2010, Chairman Aranha announced that Saadat was the new CEO of URCA.
He said URCA received applications from the local market as well as regional and international candidates for the top position.
Saadat, who headed CWC St. Lucia, reportedly has more than 15 years of global experience in regulation and competition strategy, coupled with a proven track record of leadership roles in the communications industry.
It wasn’t long before concerns about Saadat’s appointment made it to the press.
Trade Economist Hank Ferguson asked on The Guardian Business Facebook Feedback months ago: “Should I be worried that the former CEO of Cable and Wireless is now the regulator for BTC which is being purchased by his former employers? This should concern us all.
“If I were a visitor to this country, I would be forced to believe that the local population did not have competent or capable people, as every major entity within the country seems to have foreign (non nationals) at the helm. Where are the Bahamians?
“I do not question Mr. Saadat’s capabilities and his work in St. Lucia but noted that when he resigned from that post he noted his desire to return to his home country.
“I assume he has lost that desire but it worries me that our dependence on foreign talent may come at the expense of developing our own skills and talent (and God forbid that he and others are not engaged in the transfer of skills).”
The timing of Saadat’s hiring to the regulatory body after he left his position at Cable and Wireless prompted one union leader to say “we smell a fish there”.
But URCA said in December 2010, “The appointment of Mr. Saadat as former DPR (director of policy and regulation of the Public Utilities Commission) is far from sinister and would not give rise to any reasonable person concluding that some untoward scheme was underway or otherwise provides a basis for one to ‘smell a fish there’.
“…This URCA board is very pleased with Mr. Saadat’s performance, firstly as DPR and now as CEO. The board is satisfied that no conflict of interest exists, and will ensure that none rises between Mr. Saadat’s duties as CEO (and an executive board member) of URCA and any past association that he had with Cable and Wireless.”
At the time, the names Marsha and Philip Lewis were not yet in the press.
But last Thursday, URCA said, “From URCA’s perspective, there was no actual or perceived conflict arising out of the recruitment of Mr. Saadat or the engagement of LCI (Mrs. Lewis’ company) in 2009.”
PLP CONCERNS
The PLP has expressed concern about the fact that a former CWC executive heads URCA at a time when URCA is considering the BTC sale.
“The Progressive Liberal Party finds it most interesting that Mr. Saadat’s resume made no mention of his return to the Far East to ‘settle down’ as noted by him as his main reason for resigning from Cable and Wireless St. Lucia in 2008.
“The PLP asks how is it that in less than eight months Mr. Saadat, with just 14 years of experience, was selected by the FNM government to become the director of policy and regulations at URCA in The Bahamas and was then instantly promoted to the position of chief executive officer at URCA,” a recent statement from the party said.
The issue was raised in the House of Assembly last week by Golden Gates MP Shane Gibson. It came after The Nassau Guardian article based on Mrs. Lewis’ LinkedIn profile.
“Now bear in mind, Mr. Speaker, that this thing was carefully plotted out. Cable and Wireless has a former employee working in the MIS (management information systems)department at BTC. Cable and Wireless’ former employee is in charge of URCA (Saadat).
“Cable and Wireless’ current employee is also a consultant to URCA. You see the picture, Mr. Speaker? This thing was carefully crafted and carefully designed.”
As previously mentioned, CWC subsequent to these statements released a statement saying Mrs. Lewis left in 2009.
Speaking in the House early Wednesday, Gibson said, “This didn’t just start. Don’t mind them saying (it), Mr. Speaker. Everybody knows that Cable and Wireless did not just parachute into this position where they decided to purchase BTC. This was carefully planned out and mapped out where they put their people in strategic positions to make sure that at the end of the day, Mr. Speaker, they get what they want.”
Gibson added, “I wouldn’t be surprised if this was condoned by the Government of The Bahamas, because when you look at that contract that they signed with Cable and Wireless the Bahamian people would wonder who is it that the government is representing.”
But Minister of State for Finance Zhivargo Laing denied that Cable and Wireless had received any advantage in the BTC privatization process.
“I’d like to make it abundantly clear that any suggestion on the part of the member for Golden Gates that the government coordinated, orchestrated for any employees of Cable and Wireless to work at URCA or anywhere else in pursuit of this privatization is false, inaccurate and absolute nonsense, absolute nonsense,” Laing said.
“URCA is an independent organization and has employed and engaged at its pleasure. I want to make that abundantly clear, Sir.”
That independence will no doubt be important as the regulatory body considers whether to provide the green light for the sale of BTC.
2/28/2011
Bahamas: Cable and Wireless Communications (CWC) and the Utilities Regulation and Competition Authority (URCA)... What's The Connection? (Part 2)
thenassauguardian
By CANDIA DAMES
Guardian News Editor
candia@nasguard.com
A closer look
Government officials are often quick to point out that the Utilities Regulation and Competition Authority (URCA) operates independently.
URCA may be so independent that ministers aren’t quite sure which of them is responsible for the regulatory agency.
Is it Minister of State for Finance Zhivargo Laing?
He said no. That would be Deputy Prime Minister Brent Symonette.
So we contacted Symonette.
He too said no. That would be Minister of National Security Tommy Turnquest.
So we contacted him.
But Turnquest said that would be Attorney General John Delaney, who we were unable to reach.
Perhaps it is Delaney.
We are still unsure whether he would have referred us to another minister.
With URCA reviewing the pending sale of a majority interest in the Bahamas Telecommunications Company (BTC) to Cable and Wireless Communications (CWC), in some circles questions are being raised about the affiliation former CWC executives have with the regulator.
CWC said last week that a foreign human resources consultant for URCA is a former CWC employee — not a current one as her LinkedIn profile had said. The Nassau Guardian based an initial story on what she was saying on that online professional profile.
Marsha Lewis left CWC in 2009, according to the telecoms company, and has been providing human resources consultancy to URCA since 2009.
So she is no longer with CWC.
On Friday, information came to our attention that her husband, Philip Lewis, is.
So we did some digging.
His LinkedIn profile confirmed that he is CWC Caribbean’s Vice President for Business Development.
We needed to be sure though that his LinkedIn profile was current.
So we confirmed through CWC that Mr. Lewis is still with the company.
We then sent a formal question to CWC: "Given that a former CWC executive is CEO of URCA (Usman Saadat), another former executive is the HR consultant for URCA (Marsha Lewis), and a current CWC executive (Philip Lewis) is married to the HR consultant, is CWC concerned in any way that there may be at the very least an appearance of conflict given that URCA is considering CWC's purchase of BTC?"
After The Nassau Guardian’s original story on Wednesday based on Mrs. Lewis’ LinkedIn profile — which has since been changed — CWC shot back, informing that Mrs. Lewis left the telecoms company in March 2009 to start her own business — LCI Inc., an HR consultancy.
Why URCA needed to bring in a foreign HR consultant is another issue. It was certainly the board’s prerogative.
And URCA has indicated that it is quite satisfied with Mrs. Lewis’ services.
Why Mrs. Lewis changed her profile to say she left CWC in December 2008, instead of March 2009, is not clear.
Following our inquiry on Friday about her husband, LIME CEO David Shaw approved a brief response from the company: “As the largest telecoms employer in the region CWC/LIME has been a corporate home to many people who gained experience with us and then moved on to other businesses or ventures.
“In this region, that’s not uncommon, especially in telecoms. And as for a conflict of interest, the legislation and regulatory framework were set up before we were the successful bidder.”
Indeed, The Nassau Guardian has no evidence to suggest that CWC had any advantage in the privatization discussions, but the connection to URCA is interesting to note, even if it is purely coincidental.
THE INTRODUCTION
URCA engaged LCI Inc, Mrs. Lewis’ company, in August 2009 “to provide assistance and advice in relation to URCA’s ongoing development of its human resource capacity.”
The former CWC executive was introduced to URCA by another former CWC executive — Saadat, the now CEO who at the time was URCA’s director of policy and regulation.
This was confirmed in URCA’s recent press statement.
“LCI’s selection by URCA’s then CEO was through an introduction of LCI by Mr. Saadat. URCA’s board endorsed the decision to engage LCI,” the statement said.
At the time of the approval of Lewis’ contract with the regulator, URCA pointed out, CWC was nowhere in the privatization picture.
“Public announcements by the government have disclosed that C&W did not participate in the government’s initial search for a strategic partner in the privatization of BTC, and was therefore not under consideration as a possible purchaser of BTC until 2010. From URCA’s perspective, there was no actual or perceived conflict arising out of the recruitment of Mr. Saadat or the engagement of LCI in 2009. “
The Nassau Guardian noted in a story on this issue this past Friday that CWC — though not a bidder in the BTC privatization process in 2009 — was on the government’s radar as Privatization Committee Chairman T. Baswell Donaldson advised Prime Minister Hubert Ingraham in 2009 that CWC had conducted a “lengthy” review of the opportunity to purchase 51 percent of BTC.
CWC in 2009 was one of the companies the privatization committee said it favored to bid for BTC. But CWC at the time decided not to proceed.
URCA has stressed that there is no conflict involved in the fact that two former CWC executives play key roles with the regulatory agency.
But is there an appearance of conflict?
It depends on who you ask.
The Progressive Liberal Party insists that there is.
Its chairman, Bradley Roberts, has said Saadat should not serve as CEO.
What’s clear is that URCA will not only have to provide the necessary regulatory approvals to CWC’s purchase of BTC’s majority shares, but it will also have to regulate the new company.
So the appearance of fairness and transparency is not only important in the approvals process, but in the ongoing regulation of the new BTC or whatever CWC will decide to call it.
Furthermore, URCA may need to provide repeated assurances to BTC’s competitors that CWC does not have an advantage in the regulatory process due to connections any of its key officials may have to CWC.
Competitors may get jittery at the knowledge that a former CWC CEO is now CEO of URCA, and that a current executive is married to URCA’s human resources consultant, who is a former executive of CWC.
But URCA’s Chairman Wayne Aranha said in a statement to The Nassau Guardian over the weekend the board has no concerns in this regard.
He advised that Mrs. Lewis’ company is an advisor to URCA in relation to certain human resources matters and initiatives.
“As such, Mrs. Lewis does not initiate or authorize transactions or otherwise make decisions for URCA relating to HR or any activities,” Aranha explained.
“To be clear, she has no involvement with regulatory matters and there is no issue of conflict.
“The board and I are aware of her husband’s employment. This does not concern me given the conclusion above relating to Ms. Lewis.”
USMAN SAADAT
In May 2009, Prime Minister Hubert Ingraham informed the House of Assembly that URCA — which was about to be formed — would be headed by a non-Bahamian.
Usman Saadat became URCA’s director of policy and regulation, and later its CEO, a post he currently holds.
“We have already accessed the talent of someone from outside The Bahamas who will be the policy director of URCA,” Ingraham said in the House of Assembly in 2009.
He explained then that while it was the government’s hope to populate the entity with Bahamians, it might not be realistic in the near term.
“In this early phase...we will be required to access talent that may not be available in The Bahamas,” Ingraham said.
He noted then that the policy director’s salary will also be “far in excess of anything heretofore known by public sector enterprise.”
“I would expect that some of the salaries paid to some of the professionals will be higher than what is normally paid in other areas in The Bahamas,” he said without divulging the pay scale for those appointed to URCA.
URCA’s goal, the prime minister noted, is to “have a transparent, effective, well-managed and knowledgeable entity that can act independently: that has no axes to grind; no preferences, no bias to cause the sector to be regulated in accordance with the Communications Act.”
The bill to establish URCA was passed in Parliament in 2009, as part of a package of communications bills designed to restructure the communications industry in the country.
URCA made extinct the Public Utilities Commission (PUC). URCA has far more extensive powers, authorities and duties than the PUC.
In September 2010, Chairman Aranha announced that Saadat was the new CEO of URCA.
He said URCA received applications from the local market as well as regional and international candidates for the top position.
Saadat, who headed CWC St. Lucia, reportedly has more than 15 years of global experience in regulation and competition strategy, coupled with a proven track record of leadership roles in the communications industry.
It wasn’t long before concerns about Saadat’s appointment made it to the press.
Trade Economist Hank Ferguson asked on The Guardian Business Facebook Feedback months ago: “Should I be worried that the former CEO of Cable and Wireless is now the regulator for BTC which is being purchased by his former employers? This should concern us all.
“If I were a visitor to this country, I would be forced to believe that the local population did not have competent or capable people, as every major entity within the country seems to have foreign (non nationals) at the helm. Where are the Bahamians?
“I do not question Mr. Saadat’s capabilities and his work in St. Lucia but noted that when he resigned from that post he noted his desire to return to his home country.
“I assume he has lost that desire but it worries me that our dependence on foreign talent may come at the expense of developing our own skills and talent (and God forbid that he and others are not engaged in the transfer of skills).”
The timing of Saadat’s hiring to the regulatory body after he left his position at Cable and Wireless prompted one union leader to say “we smell a fish there”.
But URCA said in December 2010, “The appointment of Mr. Saadat as former DPR (director of policy and regulation of the Public Utilities Commission) is far from sinister and would not give rise to any reasonable person concluding that some untoward scheme was underway or otherwise provides a basis for one to ‘smell a fish there’.
“…This URCA board is very pleased with Mr. Saadat’s performance, firstly as DPR and now as CEO. The board is satisfied that no conflict of interest exists, and will ensure that none rises between Mr. Saadat’s duties as CEO (and an executive board member) of URCA and any past association that he had with Cable and Wireless.”
At the time, the names Marsha and Philip Lewis were not yet in the press.
But last Thursday, URCA said, “From URCA’s perspective, there was no actual or perceived conflict arising out of the recruitment of Mr. Saadat or the engagement of LCI (Mrs. Lewis’ company) in 2009.”
PLP CONCERNS
The PLP has expressed concern about the fact that a former CWC executive heads URCA at a time when URCA is considering the BTC sale.
“The Progressive Liberal Party finds it most interesting that Mr. Saadat’s resume made no mention of his return to the Far East to ‘settle down’ as noted by him as his main reason for resigning from Cable and Wireless St. Lucia in 2008.
“The PLP asks how is it that in less than eight months Mr. Saadat, with just 14 years of experience, was selected by the FNM government to become the director of policy and regulations at URCA in The Bahamas and was then instantly promoted to the position of chief executive officer at URCA,” a recent statement from the party said.
The issue was raised in the House of Assembly last week by Golden Gates MP Shane Gibson. It came after The Nassau Guardian article based on Mrs. Lewis’ LinkedIn profile.
“Now bear in mind, Mr. Speaker, that this thing was carefully plotted out. Cable and Wireless has a former employee working in the MIS (management information systems)department at BTC. Cable and Wireless’ former employee is in charge of URCA (Saadat).
“Cable and Wireless’ current employee is also a consultant to URCA. You see the picture, Mr. Speaker? This thing was carefully crafted and carefully designed.”
As previously mentioned, CWC subsequent to these statements released a statement saying Mrs. Lewis left in 2009.
Speaking in the House early Wednesday, Gibson said, “This didn’t just start. Don’t mind them saying (it), Mr. Speaker. Everybody knows that Cable and Wireless did not just parachute into this position where they decided to purchase BTC. This was carefully planned out and mapped out where they put their people in strategic positions to make sure that at the end of the day, Mr. Speaker, they get what they want.”
Gibson added, “I wouldn’t be surprised if this was condoned by the Government of The Bahamas, because when you look at that contract that they signed with Cable and Wireless the Bahamian people would wonder who is it that the government is representing.”
But Minister of State for Finance Zhivargo Laing denied that Cable and Wireless had received any advantage in the BTC privatization process.
“I’d like to make it abundantly clear that any suggestion on the part of the member for Golden Gates that the government coordinated, orchestrated for any employees of Cable and Wireless to work at URCA or anywhere else in pursuit of this privatization is false, inaccurate and absolute nonsense, absolute nonsense,” Laing said.
“URCA is an independent organization and has employed and engaged at its pleasure. I want to make that abundantly clear, Sir.”
That independence will no doubt be important as the regulatory body considers whether to provide the green light for the sale of BTC.
2/28/2011
Bahamas: Cable and Wireless Communications (CWC) and the Utilities Regulation and Competition Authority (URCA)... What's The Connection? (Part 2)
thenassauguardian
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