Creecy steps in to resolve dispute over Acsa baggage screening services

Transport Minister Barbara Creecy has directed the Airports Company South Africa (Acsa) board to enter mediation with the firm responsible for baggage handling services at its airports.

This comes after Acsa and the South African Civil Aviation Authority (SACAA) suffered a legal blow last month in their battle with Aviation Co-ordination Services (ACS) to take control of hold baggage control screening (HBS).

Legal battles

The Gauteng High Court dismissed the urgent appeal by Acsa and SACAA, which barred it from bidding for or purchasing baggage screening equipment.

The court judgment upholds the High Court’s order of 5 November 2024, requiring Acsa and SACAA to allow ACS to replace the relevant equipment at OR Tambo and King Shaka International Airports while a main review case is still before the courts.

It confirmed that the critical replacement of old hold baggage screening (HBS) equipment may proceed at the international airports, which is needed to ensure public safety and airport efficiency.

The dispute has resulted in multiple review applications, interdictory proceedings, and related appeal proceedings in the High Court.

Creecy’s ministerial orders issued on Thursday empower 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.

ALSO READ: Acsa loses appeal for control of baggage screening services at major airports

‘Negative impact’

The minister said she is 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.

“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 destabilisation of an essential national security function,” said Creecy.

ALSO READ: Acsa interdicted from adjudicating and awarding R3bn tender

Terms of reference

Creecy ordered the board to finalise and execute a mediation agreement which contains the following terms of reference:

• 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.

• The dispute pertaining to ACS, which is responsible for the provision of the HBS and interrelated services, will be addressed at the mediation.

• 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, 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.

Mediation

ACS CEO Duke Phahla welcomed the ministerial order announced by Creecy

“We strongly believe that the current challenges can be resolved without further delay or public expenditure through the courts. Our priority is, and always has been, the safe, secure, and compliant screening of baggage on behalf of our airline clients and their passengers.

“We enter this process in the spirit of collaboration and transparency. We look forward to engaging with Acsa and the Department of Transport to find an outcome that protects the integrity of South Africa’s aviation security systems,” said Phahla.

ACS was established by the airline industry to provide HBS services on behalf of airlines operating at ACSA-managed airports.

NOW READ: Acsa wants a look over in fight over baggage screening services