TATT Sues Trinidad & Tobago's Laqtel for Avoidance of Contract Guarantee

Trinidad & Tobago telecoms regulator TATT has filed a lawsuit against mobile operator Laqtel for failing to deposit a TT$4mn (US$638,000) bond as a guarantee that it would meet concession obligations, local press reported.

The concession contract, won in June 2005 and awarded in December 2005, required Laqtel to deliver the bond by January 14, 2006.

Laqtel has since been hit by financial problems that are putting the entire venture in jeopardy and in March 2007 said it was searching for financing partners needed to put up some US$71.4mn for network buildout.

If the firm does not launch operations by December 31 this year, TATT will be entitled to strip it of the concession altogether.

Incumbent Under Fire

Meanwhile, Trinidad & Tobago's incumbent fixed line operator TSTT has problems of its own. TSTT employees represented by the Communications Workers Union (CWU) have accused the company of planning to lay off 441 positions and have sought mediation by the Prime Minister Patrick Manning.

TSTT is engaged in a company restructuring program and has confirmed that there are 190 positions that are obsolete, such as telegraph operators. But it also says there are 220 vacancies and does not understand how the CWU arrived at the figure of 441.

TSTT has offered to meet with the CWU to iron out the restructuring plan but claims the union is stalling the meeting, a claim that CWU secretary general Lyle Townsend denied.

Posted to the site on 2nd October 2007