Wednesday, October 11, 2006

Aviance workers smell fish over bidding for cargo handling

By Ama Achiaa Amankwah
Over five hundred workers of Aviance Ghana Limited, (formerly AFGO), an under-wing and cargo handling business at the Kotoka International Airport have expressed fears that their jobs are at stake.

This is because the Ghana Civil Aviation Authority, (GCAA) has not offered them a fair chance to bid for contract to continue operating at Kotoka International Airport, (KIA).

The workers are questioning why a partner, offering the same terminal services as Aviance is being given preference to be the first operator, while Aviance which has been in the business for twelve years has been sidelined.

“There is an unfair arrangement against Aviance as the GCAA seeks a second ground handling operator and warehouse management. If you are asking for bids then it should apply to all. What was the criterion used in selecting the first operator? We demand for an open, transparent and fair bidding process”, agitated workers argued.

Aviance Ghana Limited is a Ghanaian registered limited liability company founded in 1990 when the GCAA embarked on a project to improve the general infrastructure at the KIA.

Aviance, formerly AFGO limited began operations in 1993 as the sole provider of ground handling services at the KIA and manager of the cargo facility.
On May 8, 2006, the GCAA put out a newspaper advertisement inviting tenders for the provision of a second ground handling operator license and warehouse management services. Information reaching Public Agenda indicates that six companies, including Aviance bided by the of June 30, 2006.

When Public Agenda contacted the management of the GCAA, it explained that the new aviation policy calls for a one stop-one-shop for ground handling, which includes terminal, ramp and cargo. “To this effect, the terminal handling agreement with Ghana Airline Handling Company, (GHACO), the subsidiary handling company of the national airline wholly owned by government was extended to include ramp and cargo services. The GHACO license is therefore considered as the first of such one-stop-shop license.”

The management stated the GHACO’s license was owned and managed by the liquidator of Ghana Airways Limited. It said the liquidator processed the sale of license through international competitive tender. “AH Menzies who took part in the tender won the bid to purchase the shares of GHACO from the liquidator. AHS Menzies is therefore the operator of the 1st one-stop-shop license issued to GHACO.

According to the workers, the fact that Aviance is bidding while Menzies is not is unfair. They criticized the emphasis on financial requirement as the most important in the bidding criteria rather than human capital. They claim the 3% allocation to human capital in the bidding criteria is unfair. “The nature of the job is such that human capacity takes 70%.”

Further, the Aviance workers are questioning the circumstances surrounding the transfer of license to AHS Menzies. “The liquidator was not appointed to sell licenses belonging to the GCAA. It casts doubts about the processes of Menzies acquiring license. That is a challenge for the new minister.”

Aviance Ghana limited as at December 31, 2005, paid to the GCAA $5.850 million rent and $10.270 million in royalty. Within the space of 11 years, Aviance is said to have committed over $7 million to buying equipment and to demonstrate its commitment to the aspirations of the airport authorities

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