Gafsons Industries Limited has hired a private investigator from the U.S. to probe last Monday’s fire at the Houston, East Bank Demerara complex.

Executive Chairman of Gafsons Industries, Sattaur Gafoor, told the Guyana Chronicle that the investigator will arrive in Guyana within a week.

“There is too much at stake, we have lost profits for this period of time when we are out of business. All I can say we have tried over the years to offer the best possible service; we have always paid our taxes; we have always been honest to our employees and above all we have honoured our commitments to society; we have fulfilled our corporate responsibilities and we avoid confrontation,” a composed but tired Gafoor said.

The chairman explained that within 64 years, there has never been a fire — “not even during the tumultuous years of the 1980s; our first fire was on the 9, May 2016 — basically 64 years after we started business.”

Explaining the cause of the first fire, Gafoor said there was no electricity within the bond where the fire started, neither electrical wire but combustible items inside.

He said the fire quickly spread to the other bonds — bonds two, four, five, six — then to the administration building, conference room and storage building.

“We have lost all records, personal possessions and things that can never ever be replaced… historical records were lost and my library was gone, and only one building that was badly burnt still stands,” he said.

Gafoor said insurance companies had paid over only U.S.$2M for the stocks that were lost, while U.S.$12M is outstanding for the buildings lost in the fire.

The businessman said there was major displacement of staff as there was no equipment, desk or furniture, while senior staff operated under severe distress with no privacy.

“We even rented portable washrooms,” he said.

Gafoors told this publication that in order to restock, suppliers had to be flown in to discuss preferential, premium prices and the earliest deliveries.

CONSIDERABLE PRESSURE

“There was considerable pressure from creditors who fear not being paid; had it not been for the sympathy and support of Republic Bank, I don’t know where our business would have been,” he disclosed, as he also praised Divisional Fire Officer Compton Sparman and other fire officials for their support and advice on avoiding a recurrence.

During the reconstruction process following the first fire, over 200 persons were employed to carry out critical works.

When tragedy struck again on Monday, 52 containers of stocks brought in for the Christmas season and valued at $U.S.2M went up in flames. The damage to buildings was also estimated at U.S.$2M.

Following the first fire, the businessman related that his competitors increased their prices and stocks from other locations were brought to the Houston Complex.

Stocks were even bought locally at higher prices in order to commence work on the complex.

“We also had to buy in order to service our customers,” he said.

Repairs on bonds one to six were completed on October 4 and 52 containers of stocks were packed in bond number six.

These containers of stocks were fully packed on October 8.

“By Monday, 10 October, when we open for business on the very day a fire wiped out everything; how can this be when there were no combustibles, only a few paint cans the painters used to paint inside, not for a commercial scale?” Gafoor asked.

A total of 405,000 square feet of stocks including tiles, generators and non-combustible items were totally destroyed in 10 hours.

WHY NOW

“For so many years, we have never had a problem, why now are we having all these problems. This company has on its payroll 987 personnel that cost $794M in last year payroll. This year that will decrease. Contractors on a daily basis cost the company $42M; Corporation Tax $396M; Capital Gains Tax $120M; Property Tax $98M; NIS $60M; and VAT $703M,” Gafoor disclosed.

He believes that the fire is very unusual and there is no guarantee of prevention of another fire. The directors, he said, have made a decision on a way forward if fire strikes again, as he lamented that it is very difficult to operate under such conditions of uncertainty.

After the first fire five months ago, Gafoor had flown in a specialist from the United Kingdom (UK) to identify the “best available practical solutions” to avoid another blaze and several recommendations were made.

Among them was the installation of not less than 25 per cent corrugated PVC pipes. These were not available in Guyana and had to be imported.

Another recommendation was that wind turbines be used to extract hot air along with new air ventilation ducts to prevent overheating; this was also implemented.

Regarding the non-use of sprinkler systems as suggested by local fire officials, Gafoors said the suppliers of the system when contacted disclosed that after a certain time, the pipes corrode and the supply of water on the scale needed could only be sourced from the Demerara River.

“The alternative we found and the most practical one was a ring system around the building where a six-inch galvanised pipe was attached to a pressure pump with water stored so in the event of a fire, we would immediately be able to access water… it took more than three months to find a suitable pressure pump,” he said.

Nevertheless, he said, the advice from the UK official resulted in the second fire being contained to one bond.
The businessman said Gafsons will work along with the Fire Service and the police in every possible way to get to the bottom of the origin of the recent fire.
Bish Panday of P&P Insurance Brokers said the company has always supported businesses putting systems in place to prevent fires, and pointed out that Gafoors is very strong on risk management.
Gafsons Industries has been in the hardware business for over six decades.

The company also operates business complexes at Land of Canaan, farther up the East Bank Demerara; at Parika, East Bank Essequibo; and at Rose Hall on the Corentyne.

From a small business going back to 1957, Sattaur Gafoor built the company to become one of Guyana’s leading distributors and manufacturing entities.

In January 2002, all operations of the company were centralised at the Houston Complex.