Gov't Dodgy Over AFGO Monopoly

MONTHS after declaring its intentions to break the cargo handling monopoly at the nation's premier international airport, Government's position on the issue is now a moving target.

Chronicle can reveal that the Kufuor administration is yet to make a conclusive pronouncement on the six-year monopoly currently being enjoyed by the Africa Ground Operations Limited (AFGO), a British and Belgian company, after almost 12 months in office, heightening fears among local entrepreneurs and Ghana Airways that it would suffer delays, unlike the Ghana Telecom situation.

At a meeting called at the instance of the Board of the Ghana Civil Aviation Authority (GCAA) and attended by airline operators and other industry stakeholders, Thursday, November 29, this year, Board Chairman, Dr. Amoako Tuffuor, confirmed government was postponing a definite decision on the issue to allow more consultations.

The GCAA appears to be treading cautiously. Both AFGO and the Association of Ghana Private Airliners (AGPA) have threatened legal action should they be slighted in anyway.

Last week, government announced the abrogation of the four year-old contract between Ghana Telecom with Telecom Malaysia, another agreement executed by the NDC government.

The administration is losing sleep over the AFGO issue, which is fast attaining cause celebre status and is resorting to time buying moves to deal with pressure, lobbying et al, Chronicle gathered.

On assumption of office the government promised to end the monopoly and to allow local indigenous businessmen who were shipped out of Kotoka by the former GCAA board to participate in the fledging industry.

Dr. Amoako Tuffuor reiterated this in an interview with the Ghanaian Chronicle in the early days of the Kufuor administration, only to change his stance a few months later. Ditto, acting Director-General Captain Boakye in a radio interview.

Chronicle can independently confirm that President Kufuor personally wants the monopoly broken, but opposition keeps increasing on him from several quarters to move in a particular direction.

The pressure is coming from two fronts - Ghanaian businessmen who used to handle cargo at the airport until the contract was awarded and AFGO, who are said to be mulling over a court action to be taken against GCAA should it annul the contract.

AFGO claims it is a seven-year contract with the GCAA and would seek legal interpretation of the contract before the courts to protect its interest.

Both Ghana Airways and the Association of Ghana Private Airline Operators (AGPA), the two frontline organisations pushing for the liberalisation of the cargo handling business, could possibly be joining forces to move their battle from the boardroom to the law courts.

They contend they suffered collateral losses when the GCAA sent them packing from the airport after the contract was awarded to AFGO in November 1993.

Ghana Airways lost its cargo handling equipment to AFGO, while a warehouse built by Mr. Safo Koranteng with a World Bank credit was also taken over.

AFGO is a Ghanaian registered company formed by a parent company called ICTC Investments Limited.

ICTC Investments Limited was formed with a combined shareholding of 50% by Gatwick Handling International (a British Company based at Gatwick Airport) and 50% by Ferrum NV, (a Belgium Company based in Antwerp).

Government, Chronicle learnt, is seized with all the facts surrounding the award of the contract and the manner it was awarded.

A company search carried out by Chronicle's London office at the time the contract was awarded showed that the company (ICTC Investments Limited), which was to carry out the multi-billion cedi business was registered as an offshore company, less than a year ago, November 24, 1993 and had a total share capital of only 2000 pounds sterling!

Further investigations confirmed that they had not even filed their returns for 1993-94.

An advertisers announcement inviting bids for the contract was placed in the Tuesday October 26, 1993 edition of the People's Daily Graphic.

"The Ghana Civil Aviation Authority (GCAA) intends to privatise their air cargo handling services at the Kotoka International Airport, Accra. GCAA is desirous to grant a concession for the lease and management of its freight terminal at the named airport to a potential operator for a period of not less than five years in accordance with such terms and conditions set forth in the tender document."

The bids closed November 20, 1993.

They were opened nine days later on November 29th, 1993. ICTC was formed November 23, 1993, but won the bid.

Eight months later, Airlines operated by indigenous Ghanaians, like Mr.

Safo Koranteng, etc. were put on notice to pack bag and baggage and leave the airport.

A strongly worded letter fired to them by the then Director-General of the GCAA, Wing Commander Andy K. Mensah (Rtd), directed them to "wind up" their cargo handling operations to make way for ICTC.

"We wish to inform you that the new freight terminal facility is expected to be in operation by October 1994. In view of the above, it is expected that all airlines/carriers currently handling cargo at the airport will take steps to wind up that aspect of their operations, which will be taken over by ICTC Investments Limited, with Ghana Airways shareholding."