The Supreme Court has dismissed an appeal made by Menzies Aviation against the Namibia Airports Company (NAC) last year, over the termination of a written agreement to provide ground services.

The appeal comes after Menzies disputed the lawfulness of the notice and in a letter dated 22 April 2022, which the NAC later withdrew and informed Menzies that they stood by the termination date of 30 June 2022 as provided for in the extension of the original agreement.

In a statement issued by NAC Chief Executive Officer Bisey Uirab on Friday, the agreement to provide ground services at the Hosea Kutako International Airport was for an initial five-year period that commenced on 01 January 2014, lapsed on 31 December 2021 and was subject to the right of renewal for three years.

According to NAC, new bids were then invited prior to the termination date of the said agreement and a six months extension was agreed to between the NAC and Menzies from January 2022 to 30 June 2022, subject to a month’s written notice of termination, should the procurement process that was pending at the time be finalised prior to the termination date.

“The NAC then asked for an undertaking by Menzies that it would vacate the NAC premises when the agreement between NAC and Menzies expires on the said date, however that was not the case. On 27 May 2022, NAC launched an urgent application seeking a declaratory order that the agreement would terminate on 30 June 2022 and that Menzies would be obliged to, on that day, cease to provide services and give vacant occupation of the premises to the successful bidder, which was Paragon,” Uirab noted.

Menzies then launched another appeal against this, which was however dismissed, with costs, during a hearing which took place in the Supreme Court on 19 April 2023, where the court demanded that Menzies’ unlawful hold over the premises and forcing NAC to make use of its services should be put to an end.

The judgment also emphasised that as Paragon was awarded the bid and that award had not been set aside, Paragon should be allowed to act in accordance with the bid as it is willing to do.

Source: The Namibian Press Agency