A member of the New Patriotic Party (NPP) Communications Team, Awal Mohammed, has described the ongoing dispute between Ghana Airports Company Limited and the McDan Group of Companies as largely political, despite its legal dimensions.
His remarks follow an announcement by Ghana Airports Company Limited that it had terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited over what it described as the company’s persistent failure to pay contractual fees for operating at Kotoka International Airport.
Speaking on March 13, Mohammed said that although the dispute has legal elements, the circumstances surrounding it suggest significant political undertones.
He recalled that in the period leading up to the elections, the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, held several press conferences where he raised concerns about alleged state capture.
According to Mohammed, Ablakwa frequently mentioned the McDan Group in relation to contracts associated with Terminal 1 at Kotoka International Airport.
“He cited McDan as one of the companies that had secured several contracts, including those linked to Terminal 1,” Mohammed said.
He added that the subsequent shutdown of Terminal 1 after the elections was therefore not surprising.
“Following the elections in December, Terminal 1 was shut down, with claims that the company owed ground rent of about $3.9 million,” he explained.
However, Mohammed said the McDan Group disputed the figure and responded publicly.
“The company pushed back, stating that the amount was not $3.9 million but rather $2 million, and that it had already paid a substantial portion of that sum,” he noted.
According to Mohammed, the facility was later reopened for operations in January, but the disagreement eventually escalated into a legal battle.
He said Ghana Airports Company Limited subsequently took the matter to court and secured a ruling allowing it to evict the company from the land it occupies at the airport.
“The court ruled that Ghana Airports Company could evict the company from the land—about 16 acres or 1.6 acres—where it operates and is developing facilities, including a warehouse,” he said.
Mohammed added that the company later filed a notice of appeal and applied for a stay of execution.
“The company filed an appeal and sought a stay of execution while the matter was being considered,” he stated.
Despite this, he argued that the company maintains it has already paid a significant portion of the ground rent it owes.
“He insists that substantial payments have already been made toward the ground rent and other obligations,” Mohammed said.
He further claimed that the company had been served with notice of an injunction pending the appeal relating to the May 2025 court ruling.
“Despite the pending injunction linked to the May 2025 ruling, officials allegedly entered the warehouse and began demolition works,” he alleged.
Mohammed also indicated that the company had raised concerns about provisions within its contract with Ghana Airports Company Limited.
According to him, the agreement requires that an eviction notice be issued at least 90 days in advance.
“In the contract, an eviction notice must be given within 90 days,” he explained.
He questioned why enforcement actions were taken almost immediately after an interlocutory injunction was issued.
“If the injunction was granted on the 10th, it raises concerns that by the 11th, officials were already entering the property to take action,” he said.
Mohammed argued that such actions could constitute a breach of the contractual agreement.
“You cannot simply issue an eviction notice without allowing the full 90-day period for the company to relocate its equipment and operations,” he said.
He concluded by urging that the dispute be resolved amicably, warning that prolonged conflicts of this nature could discourage private sector investment in Ghana’s aviation industry.
“If this happens to a private company, it sends a negative signal to other investors who may want to partner with the Ghana Airports Company to develop the aviation sector,” he said.
