CJIA says conditional award of duty-free shops ‘transparent’

The CJIA
The CJIA

In the wake of concerns expressed by local operators about the tendering process for duty-free shops at the Cheddi Jagan Inter-national Airport (CJIA), Timehri the corporation yesterday said that it followed a transparent process and made conditional awards.

“The Arrivals Duty-Free Concession was publicly advertised and a conditional award was made to the most responsive bidders. No new contract was entered into for Arrivals Duty-Free Concession,” the corporation said in a statement. The statement came after an article on the issue was published in yesterday’s Sunday Stabroek.

“CJIAC values its relationship with its existing stakeholders and will continue to work with them to ensure that all new awards are done in an impartial and transparent manner,” the statement added.

This newspaper yesterday reported that several local firms with operations at the CJIA had last Monday met with Minister of Public Infrastructure David Patterson and expressed their concern about the tendering process for duty-free shops at the airport.

Complaints were also voiced to Stabroek News over the award by the CJIA of duty-free shops in the arrivals lounge to three foreign-owned companies.

“We understand that ANSA McAL, TWEE [both of Trinidad and Tobago] and Kings Enterprises, of Suriname, have been awarded duty shops in the arrivals [lounge] by the CJIA. Although Banks and DDL had tendered, these local companies seem to have been sidelined,” a source told this newspaper.

“What are you saying to your country when you choose foreign companies with foreign products to operate at your airport over your locals? Do you think that Banks or DDL could have a space in Trinidad and Tobago over T&T companies? Are you crazy?” the source questioned.

This newspaper had reached out to Chairman of the CJIA Board, attorney Stephen Fraser, but was told by his secretary that he would not speak and that this newspaper should contact Chief Executive Officer (CEO) of the CJIA, Ramesh Ghir. This newspaper made numerous attempts to contact Ghir over the past two weeks via phone and email but he has not responded. It was Ghir who sent the press statement yesterday.

Representatives of ANSA and Kings have said that their concessions were awarded through a fair process and while they were granted the tenders by the CJIA, they still have to receive clearance from the Guyana Revenue Authority (GRA) to complete those agreements.

“We went to tender and won the award. We are still to get the licensing and so on from the customs end but this is a tender we won and I can show you the documents,” ANSA McAL Country Manager Beverly Harper had told Stabroek News when contacted.

Harper said that her company had bid previously to provide the same service in the arrivals lounge but that tender process was scrapped last year. She said the company was invited again to bid and was notified by CJIA that it had met all of the requirements but would be granted full approval pending the GRA’s customs clearance.

Manager of Kings Enterprises in Guyana, Amerit Nejal, lamented that while his company has also been given approval to operate by the CJIA, it has been waiting on the GRA for many months to finalise the operations.

‘Policy Decision’

The CJIA Corporation yesterday emphasised that it has not entered into any new contracts for duty-free concession.

“Over the past few years the Cheddi Jagan Inter-national Airport Corporation has been publicly advertising and inviting Expression of Interest for the various concessions available at the airport. This policy decision allows for qualifying individuals and companies to be awarded concessions in a fair, equitable and transparent manner. Recently, the airport engaged in a public process for Expressions of Interest for Arrivals Duty-Free Concession; Departures Duty-Free Concession; Advertising Concession; Provision of Insurance Services; Provision of Legal Services; Ground Handling Concessions; Executive Lounge Concession and Office Rental Concession,” the statement said.

 “Similar to the public tendering process, the qualifying criteria for the various concessions are clearly spelled out in the Expression of Interest document. Once these Expres-sions of Interest are received, they are evaluated and a decision taken based on the criteria set out in the document,” it added.

The statement said that it has “an obligation to provide a variety of services for airport users and we remain committed to promoting and supporting our local companies and manufacturers.”

“As in any public solicitation process, we are committed to honouring all the conditions set out in the evaluation and award process. Companies and Bidders that require assistance/clarification on the tendering process are encouraged to reach out to the management of the airport for guidance and assistance,” the statement said.

Commissioner-General of the GRA, Godfrey Statia, had told Stabroek News that his agency is currently reviewing applications for both the arrivals and departures section. He informed that the GRA is also putting measures in place for the implementation of duty-free stamps “to avoid the abuse.”

Statia made clear that “nobody has been approved” since it is the customs and tax agency that that would have to give the clearance to the operating of duty-free businesses here.

‘Suffered’

It is not only the duty-free shop owners who are irked by the CJIA’s decisions as cargo and other operators have also voiced their disquiet.

“I have also suffered at the hands of the CJIA. I am repaying a G$180 million loan because the CJIA is attempting to withdraw from written authorisation for me to operate as a ground handler. Banks DIH and DDL may also be victims of CJIA decisions. It is no surprise to me that Cabinet had no idea about this `quarter-baked’ idea to implement these fees. I was told that the subject Minister wasn’t even pre-alerted to the [Caribbean Airlines] threat. CJIA has gone rogue and the subject Minister, for whom I have much respect, must now fix the situation before more harm is done,” operator Terrence Campbell had told Stabroek News.