GUYANA HAS TO BE CONCERNED ABOUT ITS REPUTATION

Nov 02, 2012 Features / Columnists, Peeping Tom

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A country has to safeguard its reputation.  If it does not, it stands to lose massively.
Guyana must not take lightly the allegations facing a top executive of EZjet. Guyana faces the risk of being defamed if these allegations, which are before a court in the United States, are upheld.
For the sake of the country, it is hoped that those allegations are false and the charges made against one of the principals of EZjet are thrown out, because if they upheld, then Guyana would have once again acquired another chink of notoriety in American courts.
In recent years, Guyanese have found themselves facing indictments in American courts, and this has cast a negative image on the country. The indictments against Roger Khan and Ed Ahmad, both of which led to plea bargains, indicated that the accused had links to Guyana by birth. And therefore Guyana’s name was unfortunately dragged through the processes involved in these cases. But where the real damage was done was in the case against Robert Simels, where actions of the client of the accused when the client was in Guyana, was referred to. These references smeared the image of Guyana
Since then, another Guyanese has faced an indictment in a high-profile case involving campaign financing, and now yet another Guyanese has been accused in a civil suit of siphoning off funds from his employer. These are serious new allegations which have once again thrown Guyana into the spotlight for all the wrong reasons.
A negative image has serious implications not just for investors but for Guyana’s relationship with foreign governments and international institutions. Those countries and institutions are going to be wary about dealing with a country whose nationals are being consistently accused of serious wrongdoing in courts in America.
Given the concern by the Americans about the use of illicit funds in businesses, including in overseas economies, Guyana can find itself in serious hot water if the allegations against the top official of EZ jet are upheld.
It is therefore naïve for anyone to contend, imply, or suggest, that less importance should be given to the possible use of illicit funds in a business, and more to the record of that company.
Nothing could be further from the truth. The end does not justify the means.
In this era, when international norms against the use of illicit funds are being universalized, such a suggestion would be akin to a dereliction of responsibility to ensure that funds used in business are clean funds. As such, it is necessary for every business, every government and every country to be concerned about allegations about illicit funds being channeled into businesses operating out of Guyana.
It is repugnant for anyone to suggest that whether or not illicit funds were involved, any company operating in Guyana must be judged on what it has done for the people.
Business are into the business of making money and all the specials that these companies put on are all part of the promotions, in order to win market share and enjoy greater customer confidence. Some companies are prepared to take short term losses for long term gain, through larger market shares.
It is not unusual at all for a new business to enter the market aggressively. The competition that EZjet is said to have injected into the airline industry is nothing new. All the other airlines that have run the Guyana route did the same when they first came on the market. One airline even offered US$10 per seat as a starting fare.
The public knows that eventually prices will have to be restored to normal, because these promotions last for only so long. No viable airline can sustain low fares forever. In fact REDjet, which made its name with its offers of low fares, is now out of compliance.
The public therefore knows that fares will eventually have to rise and this why so many persons are trying to cash in on the cheap fares that are now on offer.
In the meantime, the government has a responsibility to ensure that illicit funds do not find their way into business. This is why it is important that due diligence is done on those who come here to do business, because when things go wrong, it is the Guyanese consumers who will suffer, jobs will be lost, and Guyana ‘s reputation will be smeared.
In the meantime, there is a known case of a local business which is being established with funds legitimately earned, being frustrated in its attempt to start-up. This sets a horrible example and can equally hurt our investment climate, as can any possible fallout from the trial that is about to take place in the United States of America.
By the way, where does the private sector stand on these issues?

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