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Cash-flush jet service suspends flights

Posted By Staff Writer On December 3, 2014 @ 5:30 am In Local News | No Comments

Exec Jet Club, whose Chief Executive Officer was arrested last week in Puerto Rico with US$620,000 stashed aboard his private jet has suspended its operations here but Aviation authorities yesterday said no violations had been committed by it.

Transport Minister Robeson Benn also announced that a review would be done to decide on its continued operations.

Both the Guyana Civil Aviation Authority (GCAA) and the Cheddi Jagan International Airport (CJIA) yesterday also said that the company was authorised to do on demand flights for compensation, signalling that its use by President Donald Ramotar for state visits was permissible.

Benn also said that not only were the three flights chartered by government cheaper than flying with a scheduled carrier but that the service was open for anyone who could afford it. “If you compare the use of Executive Jet Club compared to the normal operators… it would be better to use their services… it was a saving when that service was used,” Benn told a press conference called by his ministry, the GCAA and the CJIA Corporation yesterday. “Any Guyanese person with the means and the money could have gone and access the services in like manner,” he further added.

Khamraj Lall

Khamraj Lall

Benn, however, said he was not privy to the details of the cost per charter and the fact that the company has had only 18 flights for the year although it is a cheaper option to some destinations was a matter for Exec Jet’s personnel to look into.

Benn also revealed that currently an investigation is underway into a possible conflict of interest where an employee of CJIA had also been in the employ of Lall. “…To put it lightly, a moonlighting arrangement with Executive Jet and the gas station that the person holds and we are dealing with that matter and a related issue as a conflict of interest matter and we will deal with that matter,” he said.

Stabroek News understands that the matter involves an accountant of the CJIA who also provides accounting services for the local operations of Exec Jet and the gas station owed by Lall, Kaylees.

The operations of the Exec Jet Club have been under scrutiny since the arrest of CEO Khamraj Lall in Puerto Rico on November 22, on suspicion of intent to evade currency reporting. Lall has since been released on a US$100,000 bond, while a grand jury is to decide whether to indict him.

There had been claims that the company was not allowed to operate as a charter flight and that Ramotar’s use of it for state visits was not appropriate. Benn sought to set the record straight, saying that the company could fly for charge. “Exec Jet is authorised to conduct on-demand flights for compensation… and is authorised to operate into South America among other geographic regions, such as Central America and Mexico,” he added.

Although sources from both customs and immigration and the CJIA have said that Exec Jet staff, especially Lall, were granted waivers on security checks when coming into Guyana, Benn dismissed claims that Lall was granted any waivers from regular CJIA security and customs protocol. “At no time was any instruction given to the staff to waive the airport security procedures with regard to Exec Jet Club’s staff ingress or egress at the airport,” he stressed.

 

Keys to the gate

 

CJIA CEO Ramesh Ghir added that the keys to the gate which allows access to the Exec Jet hangar is always in the possession of the CJIA as construction work at the hangar was being undertaken. He stressed that persons from Exec Jet, like any other person, are required to go through security checks before being permitted into unauthorised zones at the airport.

“…all of Exec Jet Club’s flights must adhere to CJIA’s established standard operating procedures (SOPs) for all flights into and out of Guyana. These procedures require that the flights be processed on the International Apron and must be cleared by Customs, Immigrations, CANU and other Law Enforcement Agencies. Checks with Senior Representatives of these agencies have confirmed that their SOPs were followed in every instance for all of Exec Jet Club flights,” the GCAA and CJIA said in a joint statement. “Additionally, at no time was any instruction given to the staff to waive the airport security procedures with regards to Exec Jet Club’s staff ingress and egress at the airport. The CJIA’s security supervisors have verified that at all times these checks were carried out as is customary for all operators accessing the restricted areas at the airport,” they added.

Minister of Transport Robeson Benn flanked by CJIA CEO Ramesh Ghir on his left and Director of GCAA Zulficar Mohammed on his right. At right is Permanent Secretary, Balraj Balram.

Minister of Transport Robeson Benn flanked by CJIA CEO Ramesh Ghir on his left and Director of GCAA Zulficar Mohammed on his right. At right is Permanent Secretary, Balraj Balram.

Meanwhile, Benn reported that since the bust in Puerto Rico, the company had suspended its service here. He added that even if they had applied now for permission for flights, it would not be granted. “The operations has ceased of its own volition, as a result of this incident… we will do our internal investigation. They (GCAA) will not recommend and I will not approve,” he stated. “We will do our internal review based on all information we have here and the information we can access from overseas and then make a recommendation for a decision higher up,” he added.

The Minister informed that it was in 2010 that Lall submitted an expression of interest (EOI) to operate jet and medevac services at CJIA. He said that this was the first such EOI received by government and at the time they felt it would yield tremendous benefits for the country.

He stated then that satisfactory due diligence was undertaken before Lall was given the okay in 2012 to commence operations. “We were satisfied at the time this activity went into operation of the bona fides of the company, the director’s history in aviation… and we were satisfied too and happy that we would have this facilitation in our country,” Benn said.

He said that Guyana also relied on the fact that the company was a recognised United States company and this would have influenced the decision to approve as the government felt it was an “upfront” organisation that it was working with. “This is a United States Company and I would also like to rely on their due diligence,” he stated.

Searches of Lall’s private aircraft during a refuelling stop at the Luis Munoz International Airport, in San Juan, uncovered US$150,000, wrapped in plastic bags and a blanket under the exit row seat and US$470,000 in a black suitcase inside a compartment next to the engines which contained several black garbage bags containing bundles of currency. Lall, authorities say, accepted responsibility and ownership for the money and informed that his pilot and his father, who were with him during the refueling stop, had nothing to with the monies. Under US law, amounts over US$10,000 must be declared.

The opposition last week called on the government to conduct a thorough investigation into Lall’s operations here, saying that it may reveal breaches including tax evasion, among others.


Article printed from Stabroek News: http://www.stabroeknews.com

URL to article: http://www.stabroeknews.com/20...ce-suspends-flights/

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If it is a private jet club offering paid for passenger services, I don't think that your travel insurance would cover you. Your life insurance cover might also not pay up in case of an accident unless they can get a report of the airworthiness of the plane, medical records of the pilot,etc.

 

But even more alarming is that Benn is giving commercial advice to potential customers of a private jet. It's a clear conflict of interest, and a worrying sign that the PPP is quite happy to be seen to be doing business with a company that has just been found to be involved with illegal activities such as money laundering. Even the president has not condemned the act. Maybe Ramotar also using the plane to fly out his cut of the money disappearing out of government account?

Mr.T

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