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More questions regarding fibre-optic deal sparked by consultant's report November 21, 2006 Opposition Leader Gerry Reid says a consultant’s evaluation tabled yesterday in the House of Assembly by Innovation, Trade and Rural Development Minister Trevor Taylor raises more concerns regarding government’s decision to give $15 million to a fibre-optic deal involving friends and business associates of the premier. Yesterday, Minister Taylor tabled excerpts from a report from Electronic Warfare Associates (EWA) that semi-evaluated the Persona contract. In that report, the consultants identify numerous issues that are raising new concerns about this deal. "After reviewing EWA’s evaluation, there are many new questions that show something is definitely wrong with this deal," said Mr. Reid. "For example, the consultants conclude that they are ‘unable to comment on Persona’s solvency, nor its ability to cover cost overruns.’ I questioned the premier today as to why government would invest money in a proposal in which the main company refuses to share key financial information. Would they allow any other unsolicited proposal to move forward in a similar fashion? This is absolutely ridiculous and demonstrates again that something is wrong with this deal. "In addition, EWA states that ‘it is not possible to quantify the financial benefits to the province or government.’ This is in total contradiction to everything government has been saying about benefits accruing to the province. If these benefits were so apparent, why couldn’t the consultant immediately identify them. "This report also states that the government has no need for these fibres at this time. That also runs contrary to all comments made by government members. Why are we subsidizing companies to the tune of $15 million, when according to those evaluating the deal we don’t even have a need for these fibres? "If this unsolicited and untendered proposal was so good, so squeaky clean, why did Electronic Warfare Associates raise red flags. In the report, EWA states: ‘Prior to future projects being considered, a formal process should be created by government to simplify the application and review of unsolicited proposals?’ Why are we letting this unsolicited proposal go through without proper process, as was recommended in this report?" "There are so many holes in this deal that even their own consultant has driven a Mac truck through it. Each day that passes, and government’s refusal to answer any questions in the House of Assembly, makes it more obvious that something smells with this deal and why the public needs an independent review to get all of the details."
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