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. Picture: Courtney Africa 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. Picture: Courtney Africa
Image: Courtney Africa
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 is also accused of publishing ‘fake’ financial reports after the company posted profits but failed to mention its debt running in the hundreds of millions dating back several years.
The court documents also indicate that ACSA owes a service provider who performed services at O.R Tambo International Airport and has failed to make adequate payment despite commitments to do so.
The Star has learnt that ACSA is facing another liquidation application this week.
The service providers have been having significant challenges in getting ACSA to pay invoices resulting in these service providers facing significant cash flow problems which results in the airports being placed at risk.
ACSA CEO Mpumi Mpofu recently shared that the company posted a R472 million after tax profit for the financial year 2023/2024.
Service providers have allegedly engaged the CEO Mpumi Mpofu and the ACSA Board since 2021 to no avail.
While ACSA owes more than R550 million excluding interest on statutory increases owed to service providers and has locked the same service providers in arbitration processes and gagged them from any other recourse, it appears recent announcement of ACSA company profits is grossly overstated and may mislead shareholders and banking institutions.
It is well documented that ACSA is embarking on an R20 billion project to upgrade the current airports and is required to show profitability to secure this huge CAPEX. Amidst its troubles, the ACSA board of directors, executives, CEO and staff received absorbent bonuses.
Among the companies baying for blood is Bidvest Protea Coin Security, Fidelity Security, Eagle Eye Security, G4S Aviation, Mafako Security and Venue Security among many others.
Speaking to The Star, Eagle Eye representative Depaak Partab said: “We are currently in litigation with ACSA regarding this matter, we cannot make any further comments”.
Another security company representative who did not want to be named told The Star that jointly these unpaid service providers are owed over R500 million.
“We are owed much more than R500m, while our company is owed close to R40m.
“In order to secure renewal of employment contracts including CEO position. In order to receive bonuses and pay dividends, they have declared profit while owing us.
“She (Mpofu) and the board must be suspended and ACSA must be put under Investigation.It is open sophisticated-looking corruption if anyone receives performance bonuses. This is a fraudulent misrepresentation as all the All the cases were lost in the courts in the last three or so years. The CEO and her team must foot the legal cost bill, not taxpayers through ACSA” he said.
In July, a report by the National Treasury showed that in the 2023/24 financial year, national and provincial government departments have overall regressed in paying invoices to suppliers within the required 30 days.
However, speaking to The Star on Sunday, Mpofu denied that ACSA is deliberately not paying some of its suppliers saying the entity always pays its invoices within the legislated 30 day provision and sometimes sooner.
“ACSA has a duty to ensure that it protects itself from paying disputed invoices. Some of the invoices are under arbitration and we will not be bullied into paying invoices that are disputed. We have nine airports across the country, we are working around the clock to pull out the details of some of the transactions you are alluding to. However, it might take time to get all the information to you by today,” Mpofu said.
She emphasised that ACSA would not owe any of its suppliers without a valid reason saying: “We will give you a response but it takes time and our CFO will give you a call with all the specific details. We have reasons why some of these companies have not been paid as we cannot as a government entity owe people without any reasons”
Meanwhile the service providers have organised a media tour to show the country the dilapidating state of South Africa’s airports. “We want you to see it for yourself. South Africa’s airports are in a horrific state. While ACSA publishes false profits, the escalators don’t work, the toilets are dirty, the parking ticket machines are faulty. That is the general poor state of our airports” one of the companies said.
The Star
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