McDan Aviation Limited’s operating licence was terminated by Ghana Airports Company Limited (GACL), which has sparked many issues.
The move elicited heated reactions from policy analysts and traditional authorities alike.
The issue centers on a Fixed Base Operation (FBO) arrangement at Kotoka International Airport’s Terminal 1, where McDan Aviation was permitted to provide specialist aviation handling services under a contract signed in August 2022.
Critics contend that the judgement jeopardises trust in Ghanaian-owned businesses and calls into question proportionality, due process, and the overall investment climate, notwithstanding GACL’s insistence that the termination was required owing to repeated financial demands.
Franklin Cudjoe, the CEO and founding president of the IMANI Center for Policy and Education, has strongly objected to the ruling, calling it “myopic and dangerous.”
Speaking on the issue on his X (previously Twitter) platform, Mr. Cudjoe contended that debt is a typical aspect of both public and private sector operations and shouldn’t always result in a company’s demise.
“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.
He believes that if the debtor is acting in good faith and exhibiting a commitment to payback should be the most important consideration.
Despite signs of continued repayment attempts, he cautioned that the decision to cancel McDan Aviation’s licence could send a bad message to investors and business owners, especially those in capital-intensive industries like aviation.
He emphasised, “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,”
Mr. Cudjoe also demanded that the judgement be re-examined and urged authorities to take a more practical and encouraging stance when it comes to helping indigenous enterprises deal with financial difficulties.
Source: newsthemegh.com