Latest update April 24th, 2024 12:59 AM
Nov 08, 2012 News
Government has reiterated that it has no shares in the low-cost charter, EZjet. Responding to what appeared to be a concerted effort over the last few days by a number of government-affiliated news agencies to defend the company, Cabinet Secretary, Dr. Roger Luncheon, yesterday stressed that the administration is concerned about passengers’ welfare.
On Sunday, Kaieteur News published a report that EZjet had notified the US Department of Transportation that it would be cancelling 26 flights between October and May 2013.
Following that article, EZjet issued a statement which was published on Monday in the Guyana Chronicle, the Guyana Times, and other government-affiliated television channels and websites.
Kaieteur News received the release on Monday. That release accused the newspaper of attempting to scare its passengers.
EZjet and its founder, Sonny Ramdeo, have been facing court actions over the alleged theft of US$5.4M from a US healthcare company and its 11 hospitals. The monies were allegedly passed through the accounts of EZjet and that of Payserv, a payroll company that Ramdeo also owns.
Ramdeo has since resigned as Chief Executive Officer of EZjet to clear his name.
There have been questions as to the source of financing for the charter company which started last December and which recently applied to the US government for permission to become a full-fledged airline that will fly from Guyana to any part of the US.
Initially, the Florida-based EZjet official said that he funded the charter venture from his pension, stock options and mortgage.
But the questions persisted. There were reports that EZjet was owned by local businessmen. A government official has since said that several individuals from Florida have stakes in the company.
Responding to questions yesterday on Government’s rush to defend EZjet, Dr. Luncheon insisted that the administration does not have to own shares in companies to defend them.
Government, he said, has a “keen interest” in avoiding collapse and failure of companies operating in Guyana.
He noted that in the case of EZjet, Government has an insurance deposit in place to protect flyers in case it goes bust.
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