EZjet boss resigns in wake of fraud accusations.
The upstart airline EZjet developed some management trouble over the past 24 hours as fraud charges were made in court documents in Florida and the CEO of EZjet, Sonny Ramdeo, stepped down in wake of the accusations. The company says that Guyana-based Rosalinda Rasul, will act as CEO until a new one is appointed.
Yesterday a US news report stated that health care provider PromiseCare, had sued Ramdeo over the alleged siphoning off of over 5.4 Million US dollars into EZjet’s operations. In court documents filed in Florida, the company claimed that Ramdeo in his capacity as a Payroll Executive, took money that was intended to pay the healthcare provider’s staff and allegedly funded and bankrolled the upstart airline.
Ever since EZjet took off, flying between Guyana and the US in the first instance, questions were raised by persons knowledgeable in the aviation sector that the funders behind the airline had to have had deep pockets. The initial financial outlay appeared to be very high for the type of aircraft being used on the route. In addition, knowledgeable aviation sources said, that the fares and incentives being offered like extra baggage allowance meant that the airline would take a while to break even.
Ramdeo to counter the claims that airline was not a viable operation in the long term, fly in his advisory team and insisted that he was funding the operation out of his investments and the team knew what they were about. He scoffed at connections to former President Bharrat Jagdeo and Jagdeo’s friend, Bobby Ramroop, as the real owners of the airline. He declared that was simply not true.
EZjet managed to maintain a number of flights between Guyana and New York since last year December and expanded to flights to Toronto and Port of Spain. However, it is business unusual for the airline, the company came up with an unorthodox offer that would allow passengers to pay one fare for the month and take as many trips as possible during the month of November. The Month Pass fare requires every time the passenger flies for the passenger to pay taxes on whatever base fare the company decides it will use. The announcement of the Pass was made the same day that Ramdeo was accused of embezzling funds from his former employers.
Ramdeo is maintaining his innocence in the matter and said that he would remain off the job as CEO until the matter is resolved.