The Minister of Transport, Ms Barbara Creecy, has issued a ministerial order to the ACSA board to engage in the mediation process with Airports Coordination Services Pty Ltd.
This follows various engagements with the ACSA board on several occasions to discuss its dispute with the Airports Coordination Services Pty Ltd in relation to hold baggage screening and related services at ACSA’s airports. The dispute also involves the South African Civil Aviation Authority.
The above order is issued in terms of section 10(1)(a) of the Airports Company Act No. 44 of 1993, which empowers the Minister to take necessary steps to safeguard national security where a risk to critical infrastructure, public safety, or the national interest has been identified.
“I am concerned about the negative impact the protracted litigation could have on the integrity and reliability of HBS as the first line of defence against threats in the aviation system at ACSA’s airports,” said Creecy.
The dispute has resulted in multiple review applications, interdictory proceedings, and related appeal proceedings in the High Court.
“In this regard, I am satisfied that intervention is necessary to prevent potential disruption, compromise of national security, and reputational harm.”
As such, my engagements with the ACSA board have, in the main, related to finding a solution to resolve the dispute amicably and timeously to obviate any destabilization of an essential national security function,” said Creecy.
The objective of the mediation is therefore to reach a settlement within the parameters of the applicable regulatory framework which avoids a protracted legal dispute and safeguards national security.
The board has therefore been ordered to finalise and execute a mediation agreement which contains the following terms of reference:
- Transitional – there is a short-term issue relating to the continued and efficient functioning of the HBS system at ACSA’s airports and compliance with regulatory and international frameworks; compliance with international safety standards, which include the implementation of interim measures relating to the maintenance regime; and whether ACS/ACSA can or should install any HBS maintenance-related equipment, including the back-up HBS units.
- That the dispute pertaining to the entity that is statutorily responsible for the provision of the HBS and interrelated services, and by implication, the application of Section 217 of the Constitution, be addressed at the mediation.
- The long-term issues relate to the provision of service of HBS and its maintenance, compliance with the applicable regulatory frameworks, budgetary and fiscal constraints, the safety of passengers who use ACSA’s airports, potential revision of agreements, and the commercial relations between the parties.
- Negotiate, during the mediation proceedings must be in good faith as the legal prescripts require that parties to the mediation act in the best interests of national security.
- Prepare and submit a comprehensive report within two weeks of this order setting out the total costs incurred in relation to the dispute to date. This report must include a detailed breakdown of all the legal fees, disbursements, and any other associated expenses borne by the state.
Creecy stated that: “As an executive authority, and the Minister responsible for ensuring compliance with aviation safety and security standards, HBS is a critical component of national aviation security which falls within my legal mandate under the Civil Aviation Act No. 13 of 2009.”
In terms of section 10(4) of Airports Company Act No. 44 of 1993, the company shall take all necessary steps to give effect to this order. The order will remain in force until duly withdrawn or amended in writing by the Minister.
Enquiries:
Collen Msibi
National Spokesperson
Cell: 066 476 9015
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