The Utility Regulation and Competition Office, known as OfReg, has issued a notice stating that “some” of the territory’s licensed information and communications technology companies are not meeting their financial reporting requirements.
The notice reminded all licensed companies that they are required to submit unaudited financial statements and reports showing quarterly turnover and revenue within 15 days following the end of a given financial quarter, as well as audited financial statements within three months of the end of the financial year.
In addition, the companies are required to pay fees equal to 6 percent of their quarterly revenue, together with an amount equal to the licensees’ quarterly regulatory fee.
Failing to meet these obligations can result in administrative fines of up to $500,000 for each failure, as well as a subsequent $25,000 penalty for each day the transgression continues.
OfReg did not state in its notice what companies are failing to meet their obligations, or what specific rules are being broken. OfReg licensees include internet and television service providers, radio stations, and government entities.
OfReg’s notice is not the first time the regulator has pointed out that some entities in Cayman are not meeting their financial obligations.
In May, Alee Fa’amoe, the head of OfReg’s telecommunications office, told the Legislative Assembly’s Public Accounts Committee that some government telecom licensees are not paying their fees.
Mr. Fa’amoe said at the time that anyone who received an OfReg license should have to pay. However, some of the government entities that were licensed were “of the opinion” that those licenses should be free.
“We remain at odds with some of our government licensees about that,” Mr. Fa’amoe said at the Public Accounts Committee hearing. “But the fees are very small … so it is not worth starting a war over.”
“Except that the law is the law, is the law,” Opposition Leader Ezzard Miller replied at the time.
Ministry of Finance representatives at the hearing also indicated it was their view that the government licensees should have to pay.
“That would be the proper way to do it,” said Michael Nixon, deputy chief officer for the ministry.
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