The Deputy quotes the Report of the Comptroller and Auditor General 2002 as stating that the State is facing a €12.9 million loss on the deal negotiated with a company (details supplied) regarding the purchase of fibre optic communications links. However, the report actually states there are outstanding debtors totalling €12.9 million and not that the State is facing a loss of this magnitude. Functional responsibility for recovery of these moneys resides with IDA. The current position is that there are three companies, Worldport, Princes Holdings and Metromedia (Global Voice Networks Ltd.), with outstanding debts in respect of contracted capacity resales arising from the international connectivity contract entered into by the IDA in 1999. The State, through the IDA and my Department, continues vigorously to pursue those debts through legal and other actions as necessary.
A debt of approximately €3.14 million is still owed in the Worldport case. There is a parent company guarantee for the full amount of the debt from the US parent company of the contracting entity and, in default of payment, it is the intention to take court proceedings against the parent on foot of that guarantee. A debt of approximately €6.28 million in the Princes Holdings' case was owed at the time of the publication of the report of the Comptroller and Auditor General. The State held a bank bond for €1.587 million of that debt and that has been foreclosed on. Proceedings were issued against Princes Holdings on 3 November claiming the balance of the moneys owing.
A debt of approximately €2.57 million is still owed in the Metromedia (Global Voice Networks Ltd.) case. On 3 November 2003 legal proceedings were issued against the company claiming the moneys owed.