McDan has defaulted debt payment since 2020 and only paid GH¢2m last week out of over US$3.9 million - Ghana Airports Company

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McDan has defaulted debt payment since 2020 and only paid GH¢2m last week out of over US$3.9 million - Ghana Airports Company

Enoch Darfah Frimpong Dec - 31 - 2024 , 09:56 3 minutes read

The Ghana Airports Company Limited (GACL) has explained that even though McDan Company Limited last week paid GH¢2 million out of the over US$3.9 million debt the company owes, the GACL was insisting on full payment because McDan has defaulted since 2020.

The GACL named McDan's total debt as being US$3,995,622.66 and GH¢13,523.37.

It said it is out of this total debt that the company paid GH¢2 million last week. It added the company has been defaulting since 2020.

In a statement issued Tuesday morning (Dec 31, 2024) explaining why the GACL has shut down Terminal 1 at the Kotoka International Airport (KIA), which has been allocated to McDan Aviation for the running of private jet services, the GACL said it was demanding full payment of all debts owed by McDan before it will give access to the Terminal 1.

It explained that the GACL conducts a regular debt collection exercise every month to recover debts owed the company and also round up debt collection for the year.

The company went further and gave a specific explanation in the case of the debt of McDan Company Limited.

It said it was demanding full payment of monies owed because prior to suggested payment plans from McDan Company Limited, which was presented as far back as 2020, the company has defaulted,

It said it was not only McDan that the company was going after and that four other companies operating at Kotoka International Airport were also closed for non-payment of their debt to GACL.

"We will continue to pursue all debts as we have always done throughout the years to retrieve monies owed to GACL," the statement indicated.

The GACL accused McDan of refusing to make payments on lands acquired from Ghana Airports Company Limited as far back as 2015 with the intimation that the lands were under litigation and therefore requesting GACL to hold on with the collection of payments.

However, "McDan Company Limited has developed same lands with commercial buildings situated on it and benefiting from rental proceeds on the built properties without paying ground rent to GACL."

McDan's issue

The GACL explained that in the specific case of McDan Company Limited, several letters were written to him and meetings were held to ensure the settlement of his outstanding debts as outlined in the table below:

Additionally, McDan is required to pay GACL 15% share of the gross revenue as monthly revenue returns covering the period September 1, 2022 to November 30, 2024 which is also outstanding.

"For the record, McDan Company Limited paid two million Ghana cedis (GH¢2,000,000) on December 24, 2024, out of the outstanding three million nine hundred and ninety-five, six hundred and twenty-two US dollars, sixty-six cents ($3,995,622.66) and thirteen thousand five hundred and twenty-three cedis thirty-seven pesewas (GH¢13,523.37) owed GACL."

Attached below is a copy of the GACL's statement on the issue