GACL Action Against McDan Sparks Backlash …Franklin Cudjoe, Sempe Mantse Back Indigenous Firm

Concerns are mounting over the treatment of indigenous businesses in Ghana, following the termination of McDan Aviation Limited’s operating licence by the Ghana Airports Company Limited (GACL), a move that has triggered strong reactions from policy analysts and traditional authorities alike.

At the centre of the dispute is a Fixed Base Operation (FBO) agreement at Terminal 1 of Kotoka International Airport, where McDan Aviation was licensed to provide specialised aviation handling services under a contract signed in August 2022.

While GACL insists that the termination was necessitated by persistent breaches of financial obligations, critics argue that the decision risks undermining confidence in Ghanaian-owned enterprises and raises questions about proportionality, due process and the broader investment climate.

FRANKLIN CUDJOE QUESTIONS DECISION

The Founding President and Chief Executive Officer (CEO) of IMANI Centre for Policy and Education, Franklin Cudjoe, has taken strong exception to the decision, describing it as “myopic and dangerous.”

Commenting on the matter, via his X (formerly Twitter) platform, Mr. Cudjoe argued that indebtedness is a common feature of both public and private sector operations and should not automatically lead to the collapse of a business.

“Businesses, like countries, owe all the time. It is entirely different if the debtor has either decided not to pay or is unable to pay,” he stated.

According to him, the more critical issue should be whether the debtor is acting in good faith and demonstrating commitment to repayment.

He warned that the decision to revoke McDan Aviation’s licence, despite indications of ongoing repayment efforts, could send negative signals to investors and entrepreneurs, particularly those operating within capital-intensive sectors such as aviation.

“This is why the decision to destroy McDan’s aviation business by cancelling its licence due to some debt he is clearly committed to paying is not only unfortunate, but dangerously myopic,” he stressed.

Mr. Cudjoe further called for a reconsideration of the decision, urging authorities to adopt a more pragmatic and supportive approach toward indigenous businesses navigating financial constraints.

GACL DEFENDS TERMINATION

However, GACL has maintained that its actions were firmly grounded in contractual obligations and due process.

In a detailed statement, the airport operator indicated that its agreement with McDan Aviation Handling Services Limited had been “duly and finally terminated” following what it described as persistent breaches of financial obligations.

The agreement, executed in August 2022, granted McDan Aviation the right to provide FBO services at designated sections of Terminal 1, subject to the payment of licence fees, rent and royalties.

According to GACL, the company began defaulting on its payment obligations shortly after the agreement took effect.

The authority revealed that by late 2024, after several unsuccessful attempts to recover outstanding debts, it was compelled to restrict McDan Aviation’s access to Terminal 1.This action was later reversed after the company settled arrears covering the period from 2022 to 2024, allowing operations to resume.

Despite this development, GACL stated that the company again accumulated significant debt, with no payments made for rent and royalties in 2025, while licence fees dating back to 2022 remained outstanding.

In line with the terms of the agreement, GACL issued a 90-day notice on January 10, 2025, requesting settlement of the outstanding debt. This was followed by three additional reminders throughout the year.

During this period, McDan Aviation proposed a payment plan and submitted three post-dated cheques as part of efforts to address the debt.

However, before the cheques could be presented, the company requested that they should not be deposited, citing financial constraints.

GACL noted that continued default prompted a further notice in November 2025, ultimately leading to the formal termination of the agreement on January 16, 2026, after the lapse of the required notice period.

Following the termination, the authority clarified that any payments made thereafter would strictly be treated as debt recovery and would not constitute reinstatement of the agreement.

On February 9, 2026, GACL secured and locked up Terminal 1 and directed the company to remove its equipment from the premises within seven days, in accordance with the termination clauses.

The authority indicated that several reminders issued for the removal of items did not elicit any response.

Subsequently, on February 27, 2026 McDan Aviation made a payment in the Ghana cedi equivalent of US$265,000 – an amount GACL says represents approximately half of the outstanding debt, with efforts ongoing to recover the remaining balance.

GACL further disclosed that it is engaged in a separate legal dispute with the McDan Group over a 16-acre parcel of land, for which significant sums remain unpaid despite ongoing commercial development on the property.

Reiterating its position, the authority stressed that there is no legal basis for re-engaging McDan Aviation to provide FBO services at Terminal 1 and cautioned that all organisations must honour their contractual obligations.

McDAN AVIATION RESPONDS

Meanwhile, McDan Aviation has rejected GACL’s actions, describing them as an attempt to collapse its operations and a disregard for due process.

In a statement issued on March 12, 2026, the company described itself as Ghana’s first indigenous provider of FBO services and indicated that it had invested millions of dollars in developing the private terminal facility under the 2022 agreement.

According to the company, the facility has contributed significantly to positioning Ghana as a premium aviation hub, supporting private aviation, tourism and investment inflows.

While acknowledging delays in rent payments, McDan Aviation described them as temporary and linked to operational challenges within the current global economic climate.

It maintained that all outstanding obligations had been settled and that it had consistently acted in good faith.

“To characterise this brief administrative matter as a fundamental breach of contract does not reflect the reality of our longstanding partnership with GACL or our commitment to meeting our financial obligations,” the statement said.

The company also accused GACL of breaching contractual provisions requiring a 90-day notice period prior to eviction, arguing that the clause was designed to safeguard the substantial investments made in the facility.

SEMPE MANTSE CONDEMNS ACTION

Adding his voice to the growing debate, the Paramount Chief of Sempe and Mankralo of the Ga State has strongly criticised GACL’s actions, describing them as “lawless” and detrimental to indigenous Ghanaian businesses.

In a statement issued by his office, the traditional leader expressed “profound indignation” over what he characterised as a heavy-handed response to a matter that could have been resolved through dialogue and due process.

According to the statement, officials of GACL allegedly stormed the FBO terminal at Terminal 1 in the early hours of March 11, 2026 – around 1:00 a.m. – to seize property and equipment, despite reportedly being served with a court injunction a day earlier.

Describing the incident as “midnight justice,” the chief argued that such actions undermine democratic governance, contractual sanctity and investor confidence.

On the issue of indebtedness, he maintained that although McDan Aviation experienced temporary financial challenges due to global economic pressures, the company acted in good faith and took steps to settle its obligations.

He further argued that shutting down a Ghanaian-owned business over what he described as a “rectified administrative matter” amounts to economic sabotage.

Highlighting the company’s local ownership, the Sempe Mantse stressed that McDan Aviation represents indigenous enterprise and should be supported rather than undermined.“As a nation, we often ask who will build Ghana if not Ghanaians,” he stated.

The chief warned that actions perceived as hostile toward local investors could discourage entrepreneurship and undermine efforts to promote local participation in strategic sectors.

He also raised concerns about the broader implications of the dispute, questioning whether similar measures would be applied to foreign-owned companies under comparable circumstances.

The statement further alluded to possible political interference, cautioning that any attempt to displace indigenous businesses for political reasons could weaken Ghana’s economic foundation.

He has, therefore, called on the Presidency and the Ministry of Transport to intervene, restrain further actions by GACL, and ensure that the dispute is resolved strictly through legal and contractual processes. “We will not stand by and watch our indigenous businesses be dismantled,” he declared.

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