Barred internet service providers battle it out with NCA

Accra (Greater Accra) 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.