McDan Aviation earns rent on lands under litigation – GACL
The Ghana Airports Company Limited (GACL) has revealed that McDan Aviation has been earning rental income from commercial properties built on lands it claims are under litigation, while failing to pay ground rent to GACL.
The revelation forms part of GACL’s explanation of the reasons behind McDan Aviation’s mounting debt of $3,995,622.66 and GH₵13,523.37, which includes land leases, rentals, and terminal charges. The issue came to light as GACL detailed McDan Aviation’s obligations in a statement issued during its end-of-year debt collection exercise.
Lands Under Litigation Developed for Rentals
According to a statement issued by the GACL, McDan Aviation acquired several parcels of land from the company as far back as 2015. While McDan has argued that some of these lands are tied up in legal disputes, GACL disclosed that McDan had developed the same properties into commercial buildings and has been profiting from rental proceeds without fulfilling its financial commitments to GACL.
“It is worthy to note that McDan Company Limited has developed the said lands with commercial buildings situated on them and is benefiting from rental proceeds without paying ground rent to GACL,” the statement read.
Breakdown of Debt
The debt owed by McDan Aviation includes obligations tied to various properties:
- Block Factory, Spintex Road (5.66 acres): $1,160,827.23
- Airport Logistics Building, Spintex Road (10.63 acres): $2,168,266.75
- Courier Enclave (0.59 acres): $8,140
- Terminal 1 Rent and Fees: $640,232.48
- Cargo Village Offices: GH₵13,523.37
Additionally, McDan Aviation owes GACL a 15% share of gross revenue from September 2022 to November 2024, which has yet to be paid, the GACL statement said.
Defaulted Payment Plans
GACL stated that McDan Aviation had previously proposed payment plans in 2020 but defaulted on them. Despite a partial payment of GH₵2,000,000, the bulk of the debt remained unsettled.
Implications and Reactions
The revelations about McDan’s rental income from lands under litigation have sparked public debate about the fairness and transparency of its dealings with GACL. McDan Aviation, in its defense, has denied owing the stated amount and expressed disappointment over GACL’s actions, describing them as abrupt.
This development underscores the complexities of land use and lease agreements at the Kotoka International Airport and raises broader questions about corporate accountability in Ghana.