Dear Editor,
In a bizarre twist of the narrative, Mr. Nascimento – the Public Relations Officer for Ogle Airport Inc., in his recent comments in an article published in the Guyana Chronicle (Domestic airlines prohibited from transporting foreigners from Interior), downplayed the Government of Guyana’s stake in the Eugene F. Correia International Airport by stating that the airport is a “private enterprise”.
While Mr. Nascimento’s statement may seem true and came on the heels of a recent visit to the Airport by the Hon. Deodat Indar – Junior Minister of Public Works, it is merely a half-truth. The lands which the Airport and all its facilities are built on still remain the property of the Government; so too is the control tower and its equipment. There was even a US$2 Million EU developmental soft loan that was made available to the Airport through the Government of Guyana with the option of converting all or part of that loan into equity for the Government of Guyana, not to mention several grants. The accurate description of the Airport is a Public- Private Partnership.
Although the impact of COVID-19 is severe on the aviation sector, domestic flights and helicopter operations for the Oil and Gas Sector continue to operate under strict COVID-19 safety protocols from the Airport daily. Only the scheduled international flight operations have been suspended. However, Mr. Nascimento has claimed that the Airport is facing losses at some 60 per cent while he ignored mentioning the huge revenue stream the Airport had recently benefited from through the subleasing of lands to the many companies including some big players within the Oil and Gas Sector.
Over the years, many stakeholders have raised serious concerns over the governance of the Airport by Ogle Airport Inc – the Airport Operator. There are still pressing issues that are in urgent need of addressing by the new Government such as, the Airport’s non-compliance with the agreement it has with the Government of Guyana for the establishment of a Capital Replacement Reserve Fund; the non-compliance of having an independent Airport Review Panel instituted; the need to ensure equity through a balanced board with the right mix of competent, relevant and independent directors; and the need to practice transparency through disclosure.
It is important that while our new government is reviewing many deals they should also pay close attention to inherent issues in Public-Private Partnership arrangements such as that between itself and Ogle Airport Inc.
Yours faithfully,
Capt. A. Mazahar Ally
Shareholder for ASL, AMS and
GRSI
