Evatex Threatens Legal Action Against Ghana Airport Company Over Contract Termination

What's Happening?

Evatex Logistics Limited, a company involved in mining and stevedoring, is threatening to sue the Ghana Airport Company Limited (GACL) for $64.6 million following the termination of its auditing and revenue assurance contract at Kotoka International Airport. Evatex claims significant capital investment in the contract and demands the withdrawal of the termination notice within seven days. The contract, signed in December 2024, allowed Evatex to charge 15% of uncovered revenue. However, GACL states that Evatex has not generated any revenue since operations began in April 2025. Investigations have revealed legal breaches in the contract, including violations of procurement laws, leading to its termination.

Why It's Important?

The dispute between Evatex and GACL underscores the complexities and potential legal challenges in government contracts, particularly those involving significant financial investments. The case highlights issues of transparency and accountability in public procurement processes. The involvement of the Office of the Special Prosecutor and the arrest of several officials, including the former board chairman of GACL, indicates serious concerns about the legality and ethical standards of the contract award. This situation may lead to increased scrutiny of similar contracts and could influence future procurement practices in Ghana, potentially affecting international business relations and investments.

What's Next?

If GACL does not retract the termination notice, Evatex plans to proceed with legal action to enforce its rights. The ongoing investigation by the Office of the Special Prosecutor may result in further legal consequences for involved parties. The case could prompt reforms in Ghana's procurement laws and practices, aiming to prevent similar disputes and ensure compliance with legal standards. Stakeholders, including international investors and business partners, will likely monitor the situation closely, assessing its impact on Ghana's business environment and investment climate.