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Home General News

McDan Aviation Defaulted Since 2020: GACL Demands Full Debt Payment After NPP’s Election Loss

GhanaPoliticsOnline.com by GhanaPoliticsOnline.com
December 31, 2024
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The Ghana Airports Company Limited (GACL) has revealed that McDan Company Limited has defaulted on its debt payments since 2020, despite making a partial payment of GH¢2 million last week. The company owes a total of US$3,995,622.66 and GH¢13,523.37, according to GACL’s records.

In a statement issued on Tuesday, December 31, 2024, GACL clarified its reasons for shutting down Terminal 1 of the Kotoka International Airport (KIA), which had been allocated to McDan Aviation for private jet operations. The GACL insisted that full payment of all outstanding debts must be made before McDan Aviation can regain access to the facility.

The statement explained that McDan’s payment of GH¢2 million was a mere fraction of the total debt owed and came only days after the New Patriotic Party (NPP) lost the elections. The partial payment has not changed the company’s default status, which stretches back to 2020.

“Despite several engagements and demands for payment, McDan Aviation has consistently failed to settle its debts in full. This has compelled us to take necessary steps, including the closure of Terminal 1, to protect the interest of the Ghana Airports Company Limited and ensure compliance with financial obligations,” the GACL noted.

The closure of Terminal 1 has sparked discussions among industry stakeholders, given its role in facilitating private jet services in Ghana. McDan Aviation had been operating from the terminal for years under a contractual agreement with GACL.

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The GACL emphasized that it remains open to discussions with McDan Aviation but will not compromise on its demand for the full settlement of debts to ensure the sustainability of airport operations.

This development comes amid heightened scrutiny of public and private sector collaborations, as concerns over debt management and compliance with agreements continue to dominate Ghana’s aviation landscape.

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