Local ICT company BlueWave Wireless has been in the spotlight in recent weeks over a $2 million school-focused internet contract.

Previously trading as NetVo Samoa, BlueWave Wireless has been given a $2 million grant by the Ministry of Communication and Information Technology (MCIT) to boost internet connectivity in schools in Savai’i using satellite technology.

Early this month more details on the project came to light, with the Opposition revealing that the $2 million contract was initially put on tender, before it was switched to a “single source project” by the Ministry.

The change in the tender process attracted a lot of criticism from Opposition Members with the Human Rights Protection Party (HRPP) deputy leader, Lauofo Pierre Lauofo leading the voices of concern.

The suspended Lepa M.P. and HRPP leader, Tuilaepa Dr. Sa'ilele Malielegaoi also expressed concern about the contract, and described the decision to use satellite technology to roll out internet in Savai’i schools as “going backward”.

Amid the scrutiny that the company was getting in the parliament, the Office of the Regulator also invoked its own due diligence processes, and last month issued BlueWave Wireless a revocation order.

Details of the revocation order were published in an article (Regulator issues BlueWave ‘revocation order’) in the Wednesday 6 July 2022 edition of the Samoa Observer.

In an order dated 22 June 2022 signed by the Regulator, Lematua Gisa Fuatai-Purcell, BlueWave Wireless was directed to immediately submit audited financial statements for the period 1 July 2020 to 30 June 2021.

The order that was issued on 22 June 2022 superseded the first one that was issued to the same firm on 16 June 2022, which also asked the company to submit its audited financial statements. 

"Subsequent to several requests by the Regulator and the unresponsiveness of BlueWave to the requests to submit audited financial statements required for the calculation of BlueWave's annual licence fee(s) as per the prerequisite of the relevant law and Bluewave's Licence, the Regulator has seen it fit to make the following Order pursuant to section 77 (1)(a) & (d) of the Telecommunications Act 2005," the Office’s order reads. 

"BlueWave must forthwith submit audited financial statements for the period 1 July 2020–30 June 2021 for the purpose of calculating Bluewave's licence fees no later than 22 June 2022.

"Failure to respond accordingly or to comply with this Order will result in the Office of the Regulator taking appropriate legal action for non-compliance."

So the million dollar question is how did the MCIT get to issue a $2 million grant to a company that was on the verge of getting on the Office of the Regulator’s blacklist?

And why did the Ministry and the Government change the terms of the tender by making it a “single source” project when red flags were already being raised about BlueWave Wireless in terms of compliance?

The fact that the MCIT appeared to have overlooked or worse refrained from applying its own due diligence checks, before awarding the $2 million grant to BlueWave Wireless, is a cause for concern.

Didn’t the Fa’atuatua i le Atua Samoa ua Tasi (FAST) Administration get elected into office in the April 2021 General Election on a strong anti-corruption platform?

Surely the Administration knows that the $2 million grant is actually public funding and not party funding?

The close links between the owners of BlueWave Wireless and a current FAST party Member is public information here in Samoa.

So how does the FAST Administration see itself in terms of public perception with the $2 million grant saga continuing to play out in the media and in the eyes of the citizens?

This is not a good look for a 11-month old Government that came into office promising the world, including putting in place systems and processes that promoted transparency, accountability and good governance.

It is clear the Government needs to go back to the drawing board for this particular project for the following reasons: (1) Failure by BlueWave Wireless to comply with the regulatory requirements of the Office of the Regulator and (2) Clear conflict of interest the governing party has with BlueWave Wireless proprietors.

We strongly believe that one of the major factors behind the success of the FAST party in last year’s general election was the leadership’s promise to rebuild and restore the integrity of Samoa’s governance institutions.

The awarding of the $2 million grant to BlueWave Wireless could undo all the good work that the new Government has started if not overturned.