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ACSA takes on court decision on evergreen contractÂ

The Airports Company of South Africa (ACSA) has approached the Gauteng High Court for leave to appeal a judgement handed down in November last year which stopped it from procuring baggage screening equipment in an open tender process.

The court ruled that Aviation Co-ordination Services (Pty) Ltd (ACS), a company formed by airline associations, the Airlines Association of Southern Africa (AASA), and the Board of Airline Representatives of South Africa (BARSA) to conduct the baggage screening, is permitted to replace back up screening equipment and interdicted ACSA  from purchasing the baggage screening equipment pending finalisation of review application filed by ACS challenging ACSA‘s decision to provide the services themselves.

 ACS has provided services for more than 20 years without a procurement process.  This is according to ACSA an evergreen contract and it is contrast of fairness and transparency as espoused by section 217 of the Constitution and the Public Finance Management Act. ACSA is also adamant that the tariff charged will be a regulated tariff in compliance with the existing economic regulation model for airports.

The review application is to be heard in the coming months; ACSA argues that in terms of the Constitution and aviation legislation regulating it, it is mandated to provide baggage screening and handling services at its airports and should proceed with an open tender process. 

ACSA was stopped from procuring in a judgement handed down in November 2024 in line with Section 217 of the Constitution. ACSA believes the judgement has the effect of stopping a state organ from complying with the Constitution of the Republic, its legislative mandate and preserving an evergreen contract.

ACSA looks forward to a successful hearing as it is critical for compliance with the constitution and the legislative mandate. 

YA Media Team.

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