Business News of Tuesday, 16 April 2019
The Minority spokesperson on Roads and Transport, Kwame Agbodza, has described as insulting moves to give management of the Kotoka International Airport to a private company.
Government is considering a proposal to release the running of the Airport to TAV Airport Holding Company Limited, a leaked Cabinet memo revealed.
Per the memo in possession of Starrfm.com.gh, TAV will be in charge of the “day to day operations, including facility maintenance and fees collections.
The aim of the proposal, according to the leaked cabinet document, is “to help bring about the physical development of the airport enclave and transform the KIA into a world-class airport with improved managerial efficiency.”
The document prepared by the Aviation Minister for Cabinet consideration said under its Concession Agreement clause that: “As payment for their services, the concessionaires receive a percentage of the gross revenues from the operation of the airport but are required to pay the airport owner the greater of this percentage amount or a minimum annual guaranteed amount.”
Commenting on the development on Morning Starr with Francis Abban on Tuesday, Mr. Agbodza who doubles as the Member of Parliament for Adaklu in the Volta Region bemoaned: “I don’t know why we are doing this. It is an insult.”
According to him, KIA under the current management is working properly and “we don’t need to hand it over to any private company. It is unnecessary.”
Also contributing to the discussion was Bernard Adjei of the Public Services Workers’ Union of TUC (PSWU) who argued that privatization of KIA will lead to huge job losses and the casualization of labor.
“We are all asking questions as to why we will want to as a country privatize our airport. We just hope it’s a rumor,” he confessed to Mr. Abban, adding: “We think the Airport Company is being managed well. We don’t know why the privatization at this point?”