'We will not be bullied into paying providers': Acsa responds to reports about liquidation

ACSA has hit back at reports that it owes money to service providers.

ACSA has hit back at reports that it owes money to service providers.

Published Dec 11, 2024

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The Airports Company South Africa (Acsa) has hit back at allegations that it owes monies for goods and rendered.

Acsa explained that liquidation proceedings were instituted over unverified claims and it is not aware of any further impending applications since the proceedings started.

Acsa further rejects the allegations that its financial statements are fake, adding that the financial statements of 2023/24 were independently audited by the Auditor General of South Africa (AG), and an independent audit opinion was issued confirming Acsa’s financial statements present fairly in all material respects the financial position of the Group and financial performance and cash flow for the year ended in accordance with the financial standards, Public Finance Management Act and Companies Act.

It said this opinion was issued by the AG, for the year under review, having been provided with all relevant information on such claims. 

"The application for liquidation has therefore no prospects of success, as Acsa is able to pay its debts as and when they arise," Acsa said.

"Acsa timeously pays all legitimate and undisputed invoices that are received and where goods and services have been rendered. From the inception of the contracts from 2017 to date, Acsa has paid security companies an amount of R3.97billion," Acsa said in a statement.

It added that after years, the security services agreements are due for renewal and are subject to litigation from several of the current service providers.

According to reports, documents lodged in the high court of Johannesburg last week indicate that a service provider has applied for Acsa's liquidation for failing to pay the contracted service provider monies owed for services rendered.

Acsa said between April and November, it paid R292 million to all its security service providers.

Acsa explained that validated invoices are paid when due and payable.

"All disputed invoices are subject to dispute resolution mechanisms such as mediation and arbitration, where appropriate. Acsa denies placing 'gagging' orders against service providers. Specific service providers have exercised an election per the service level agreement (SLA) to proceed through arbitration, and Acsa has exercised its right to defend these proceedings.

"Acsa does not owe security service providers more than R550 million, but has received claims that still need to be verified of R126m, which are subject of the arbitration process," the airports company added.

It said all service providers are required to submit invoices for all amounts for services due and these must be submitted with information and/or documentation that Acsa may reasonably require.

"Upon receipt of the invoices accompanied by substantiating evidence, ACSA would pay the service provider according to the SLA. Those who have not been paid, have not submitted verifiable documentation to support their claims and have been asked to do so," it added.

Acsa said the claims, leveled by service providers, do not have the effect of creating liability in ACSA’s books.

"The mere existence of a claim from a service provider does not translate to a contingent liability or even grounds for liquidation.

"Filing a liquidation application does not mean that the application has merit, particularly when unverified.

"The application for liquidation is a vexatious and malicious attempt to coerce Acsa into paying unverified amounts that are subject to arbitration," the statement read.

 

As per the audited Annual Financial statement for the period ended March 31, 2024, Acsa's assets, exceed its liabilities including reasonably foreseeable contingent liabilities, and Acsa is able to pay its debts as they become due in the ordinary course of the business.

Therefore, based on the Going Concern assessment, it can be concluded that Airports Company South Africa is solvent and liquid.  

"Acsa is in receipt of unverified claims of R126 m over the calculation of increases and training. The increases are in relation to labour costs, equipment and training fees. These matters have been referred to arbitration to get a ruling on what is fair to claim and what is fair to pay," the statement read.

Acsa explained that in respect of one of the matters the arbitration was instituted on February 24, 2023, and in August 2023, Acsa filed the statement of defence and counterclaim.

"On February 7, Acsa filed an amended statement of defence and counterclaim. Eight months later in 2024 the service provider has not responded, and the matter was set down for an arbitration hearing for March 17, 2025, where they would be entitled to pursue any claims they have against ACSA in that process.

"The service provider has chosen instead on November 27, 2024, to submit an application for liquidation, abandoning the arbitration process prescribed through the Service Level Agreement as a last resort for contracting parties to resolve disputes. This clearly illustrates bad faith and opportunistic conduct to tarnish Acsa’s reputation," the statement read.

Regarding bonuses, Acsa clarified that no board members have been paid bonuses since 2020.

"They are paid standard prescribed fees, which are determined by National Treasury. The bonuses of ACSA staff were not paid for the 3 years of financial losses due to Covid-19 and cost-cutting measures and were paid for the first time in 2023/24 - the first profitable year as determined by the Acsa remuneration policy which is aligned with best practice," Acsa said.

"We are of the view that these claims are highly irresponsible and sensationalist to air such inaccurate and misleading statements with the obvious intention of causing panic among travellers and customers, especially given that Acsa is a very important part of the transport sector in this country," the airports authority said.

seanne.rall@iol.co.za

IOL

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