EZjet blasts Govt, asks public for forgiveness

Nov 13, 2012 News

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– says Ramdeo has taken back control

Grounded low-cost charter, EZjet, has confirmed that its founder/former Chief Executive Officer (CEO), Sonny Ramdeo, is being investigated by the US’s Federal Bureau of Investigation (FBI).
The troubled US-based company also accused the Guyana Government of not helping it and of seeming to have to a preference for the Trinidad’s Caribbean Airline.
EZjet made the disclosures yesterday following reports by Kaieteur News that Ramdeo was being hunted by the FBI.
The US’s criminal investigative body started making contact with Ramdeo, a Guyanese-born/Florida-based businessman, after revelations that he was alleged to have stolen US$5.4M from a US hospital chain and passing some of the proceeds through EZjet’s accounts, the company said.
Ramdeo resigned one day after news broke that he was being sued.

Yesterday, EZjet, in admitting that Ramdeo was being asked questions by the FBI, stressed that he is not being hunted.
However, close family members of Ramdeo told Kaieteur News that he has not been heard from for several days.
“First and foremost, the US FBI is not hunting EZjet’s CEO, Sonny Ramdeo. Following a civil suit filed against Mr. Ramdeo, the FBI asked Mr. Ramdeo to contact them, as soon as possible, regarding matters relating to Promise Healthcare’s diversion of over US$550M as well as the circumstances surrounding its affiliated company PayTax Serv Inc which was sold in August of 2011,” EZjet claimed yesterday.
The EZjet statement said that upon receiving the FBI query, Ramdeo “promptly” responded that he would be pleased to discuss their concerns, once EZjet matters – which took precedence – had been attended to.
“Mr. Ramdeo is voluntarily staying in regular contact with the FBI.”
However, this is direct contradiction with what Khemraj Ramjattan, the Alliance For Change (AFC) Parliamentarian, is saying.
The AFC Leader has been in contact with the US’ Department of Transportation (DOT) and other US officials whom he said confirmed that Ramdeo is being sought for violations.
These violations include persuading travel agencies not to deposit passengers’ monies into a specially established escrow account at Valley Trust, a US bank. Under the arrangement, all monies from passengers’ tickets are deposited to the escrow and are only released to EZjet after the charter would have delivered it passengers.
EZjet denied charges by Ramjattan that it directed travel agencies to illegally divert the funds, said to be over US$4M, from the escrow to EZjet’s accounts.
“EZjet did not direct travel agencies to deposit funds into any other account. Many US travel agents, due to poor experiences with previous charterers, particularly Travelspan, refused to deposit passenger ticket payments into EZjet’s escrow. Rather than cancel the passenger tickets, EZjet instead deposited its own funds into escrow to protect the passengers’ flights.
“All EZjet passenger payments are held in escrow or trust until the EZjet passenger reaches their destination, at which time, the passenger’s funds are released by the escrow or trust for disbursement to EZjet, air carrier, government, airports, and airport vendors.”
The Guyana Government had strongly defended EZjet’s entry into the local market with its low fares despite burning questions over its source of financing and investors.
According to EZjet, since its sudden suspension, due to Swift Air cancelling flights, it has been making every effort to refund passenger tickets or return passengers to their origination.
The New York office remained closed as angry passenger threatened staffers over the weekend and yesterday crowds gathered again but were met by the closed doors. Refund cheques are being written up for some passengers, staffers said. The telephone lines rang out there too.
“Incidentally, US DOT suspended EZjet’s permit for not having an air carrier. DOT suspension had nothing to do with financial matters between EZjet and Swift Air, although Swift Air served a notice of cancellation to limit their liability for returning all US passengers.”

Ramdeo in Charge
Meanwhile, EZjet said that Ramdeo is not missing in action but rather it is the Government of Guyana, who “faithfully supported EZjet with their right hand and, at the same time, supported Caribbean Airline with their left hand.”
EZjet said that when it started, Caribbean Airline followed suit by getting permission from Guyana to utilize a Boeing 767 to fly non-stop between New York and Georgetown, rather than via Port of Spain… on the same days that EZjet was flying.
“When EZjet began reducing fares, Caribbean Airline – taking advantage of its Trinidad subsidized fuel – reduced fares even further … below either airline’s cost, and while EZjet struggled, Guyana’s government offered no help to reduce EZjet’s costs.”
According to EZjet, when it launched its Toronto services, Caribbean Airline applied for and immediately received authority from Guyana to fly its B767 non-stop between Toronto and Georgetown.
“Even while it is well-known that Caribbean Airline’s survival relies on Guyana passengers, can it be that Guyana prefers this Trinidad carrier serve Guyana passengers, rather than its own Guyana airline?”
EZjet insists also that it does not maintain a “veil of secrecy”… Instead, EZjet responds openly to requests about itself. “EZjet’s vendors are paid current, with the exception of one vendor who is partially paid pending reconciliation after over-charging for some of their (sic) services.”
The company was positive that its cash problems would soon be over with Ramdeo directly in charge of EZjet activities.
“To EZjet’s knowledge, no litigation is in-process or exists. Mr. Ramdeo is personally communicating with the relevant authorities in Guyana, Trinidad, Canada, and United States.”

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