Local aviators reject Aurora’s “flimsy” excuse for shutout

May 29, 2018 News

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By Abena Rockcliffe-Campbell
Local aviation operatives feel insulted by the defence mounted by Aurora Gold Mine (AGM) as reason for its abandonment of local services and importation of Canadian pilots and an aircraft.
Recently, Aurora said that it did not feel safe with the services provided by the local airlines and thus opted to import its own plane and pilots to fly them.
Aurora thinks that despite the fact that it has taken away business from four local airlines, Guyana is still benefitting substantially—especially through the transfer of skills.
The gold company used Air Services Limited (ASL), Wings Aviation, Trans Guyana Limited and Roraima Airways for its shuttle services to the hinterland location. Last week, this newspaper highlighted the concerns of some aviation operatives who were concerned about Aurora’s shafting of its local content obligation.
On the heels of that article, a letter from an “AGM aviation employee” appeared.
The letter stated, “Please take note that the entry of this aircraft was made at the time when there were myriad aircraft accidents and incidents involving various local operators. As such this decision was induced by the concern for the safety of our approximately 800-plus local and 30 expatriate workers.”
But locals are convinced that this cannot be the truth of the matter.
One airline owner who spoke on the grounds of anonymity said, “That is utter nonsense and an insult to us. All over the world there are accidents, Canada gets accidents too. Our airlines have Trilanders, Beechcraft, Caravans and the Islanders with two engines. We heard that the British people called Gerry (Gouveia of Rorima Airlways) to fly his plane from Guyana to Antigua to take Prince Charles around. You think if the perception was that Guyana’s planes are unsafe they would have done that? No.”
Aurora had said too that while the big jobs have been taken away, “Skills that are transferrable across the aviation sector globally were imparted giving these young people the opportunity to have professional careers years beyond the lifespan of AGM across the globe.”
But the aviation operatives are not buying that either.
“That is further nonsense. All the operators at Ogle can operate a plane like that. All of us as pilots operated Twin Otters before. Trans Guyana’s Beechcraft is more sophisticated than their Twin Otter. So I do not see what the big deal is with them.”
The aviation operative pointed out that at the end of the mine life, Aurora will most likely sell the plane. “They will sell the plane and go back to Canada. But if they had given Air Services or Trans Guyana, for instance, to operate five flights a day for seven days a week (like the Otter flies) for five years any one of us can afford to buy that plane.”
The airline owner continued, “If they wanted to help Guyana aviation, they would have continued to give us the work so that at the end of that mine life, our aviation sector can say well our resource (gold) is gone but we were able to develop.”
The aviation operative said that all airline owners know that what Aurora is saying is “a smoke screen. But business is so bad now in the interior that we cannot afford for them to stop giving us the one and two flights. If you go complain next thing they will take that away too.”
It was pointed out that the Canadian pilots being used by Aurora have to be paid more than the company would have paid Guyanese pilots. “They have to pay those pilots at Canadian standard and they have to send them home for vacation every few weeks. Plus they have to be accommodated.”
Aurora has said that the Private Sector still benefits from it as Wings Aviation provides hangar parking, ground handling and office space to AGM.
“In addition, several Guyanese airlines which include Air Services Limited, Trans Guyana Airways, Wings Aviation and Hinterland Aviation also act in a support flight capacity conducting charter flights for AGM on an as needed basis,” Aurora said.
Caribbean Aviation Maintenance Services (CAMS) owned by the Correia group of companies is the designated fuel service provider to AGM’s Twin Otter, accruing millions of dollars in fuel revenue, the company added.
In addition, the Ogle Airport Inc. continually benefits from landing fees and passenger processing fees which amount to several million dollars monthly.
Ogle Airport Inc would have still benefitted if the work was given to locals. Landing fees would have still had to be paid.
Businessmen in the aviation industry are not the only ones feeling the squeeze from Aurora’s preference for foreign goods and services.
Just recently, Aurora discontinued its contract with Morrison Trucking and Equipment Rental. At least two other contractors have been told that their contracts are coming to an end and will not be renewed. The company also no longer uses Guyana as its main buying market.
Aurora moved its procurement office from Guyana to Canada. The company claimed that it had to move the office as it was getting a hard time procuring some goods from Guyana.
However, the contract that the company signed with Guyana is strict on local content.
The contract says, “In Guyana, the Company shall use all reasonable efforts to give preference—to the maximum extent compatible with efficient Operations and good mining practices using standards applicable in the international mining industry—to products and services produced and offered in Guyana, provided these are offered at competitive terms and conditions.”
The contract adds, “The Company shall give preference to Guyanese construction enterprises and to the use of buildings which can be constructed by using materials and skills available in Guyana, to the employment of Guyanese subcontractors for road construction and transportation and to the purchase of household products and furniture in Guyana.”
The contract also stipulates that within 90 days after the end of each fiscal year, the company must submit a report to the Government “setting forth (i) the relative percentages of foreign-sourced and Guyanese-sourced goods and services used by the Company, (ii) measures taken to enhance the role of Guyanese-sourced goods and services in the Project and (ii) measures to be implemented so as to improve such performance.

 

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