Digicel Bermuda is suing Government for substantial damages “for misfeasance in public office” as part of the protracted legal battle over its launch last year of international long distance.The Royal Gazette understands from a legal source that Digicel’s latest legal action is against the Ministry of Environment, Planning and Infrastructure Strategy and is based mainly on an affidavit sworn by Permanent Secretary Dr Derrick Binns.Digicel’s recent judicial review proceedings included the claim for damages, which Government applied to set aside. The proceedings were adjourned last week, but both sides are due back in court soon.It’s been Government’s case, as stated in previous affidavits, that the Digicel ILD offered through sister company and ISP Transact was not lawful. However, Digicel claims Government approved it to carry ILD.It’s Digicel’s case that it met with Government before it purchased Transact and was “absolutely clear” what its intentions were with regard to offering ILD.“Government understood this and approved the matter on that basis,” Digicel has stated. “Digicel proceeded to purchase Transact following Government’s express approval.”Digicel contends that key meeting took place last September 16 and was attended by Ministry/Telecoms officials.The approval Digicel says Government gave it appeared to be supported in a letter of October 20, 2011, obtained by The Royal Gazette.The letter, submitted to the court, was from acting director of Telecommunications Michael Wells and states: “In your query 3 you stated/questioned ‘It is acceptable to offer all three services of ISP/Mobile and ILD (utilising VOIP) to customers who request this under the Digicel brand using our Mobile Licence and Transact licence’. In our noted response we gave you a conditional “Yes”. “Yes, if you provide an Interconnection Agreement between yourself and Transact, outlining the terms and conditions of such billing arrangements”. Please be reminded that under Transact Class C Licences it can offer ILD over VOIP only.”We have obtained another letter, which appears to further back Digicel’s claim Government understood it planned to offer ILD.This letter, to the Ministry of Finance dated July 4, 2011, concerns Transact’s application for exemption under the Companies Act/Section 114B.Under the heading “Business to be carried on,” the letter states: “The amalgamation (of Digicel and Transact) will enable Digicel to carry international traffic to all customers and to provide fixed DSL services alongside existing mobile data services.”And under the heading “Benefits of grant of the licence”, the letter lists “Enhanced provision of telecommunications services in Bermuda”.The letter continues: “(a) Long Distance Telecommunications Services: Digicel has established an International Hub in New York and Miami to route all international traffic to the rest of the world. We will leverage the existing Digicel’s presence in these international hubs to offer lower long distance tariffs to customers in Bermuda.”The Telecoms Commission has advised Government that it has found Digicel and Transact are not in compliance with their licences. But Minister of Environment, Planning and Infrastructure Strategy Marc Bean has told the Commission that before he makes his decision in the case he needs more information on how it reached its findings.Long distance provider TBi is joined with Government in objecting to Digicel’s launch of ILD.