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IOL News
3 days ago
- Business
- IOL News
Court ruling secures baggage screening units for passengers at OR Tambo and King Shaka
Airline passengers can thank the courts for the replacement of four critical Hold Baggage Screening (HBS) units at OR Tambo and King Shaka International Airports. Image: Supplied Airline passengers can thank the courts for the replacement of four critical Hold Baggage Screening (HBS) units at OR Tambo and King Shaka International Airports. This is as a protracted legal dispute continues involving - the Aviation Co-ordination Services (ACS), Airports Company South Africa (Acsa) and the South African Civil Aviation Authority (Sacaa) - over who holds the mandate to provide check-in hold baggage screening (HBS) services at South African airports. The ACS said it had launched the legal action given the risk of service breakdown due to ageing screening infrastructure and manufacturer support withdrawal, which compelled it to seek urgent court relief in 2024 to allow it to replace four back-up Level 3 HBS units at OR Tambo and King Shaka. ACS in November obtained an order barring Acsa from implementing its insourcing decision or awarding any contracts under its tender that directed Acsa to allow ACS to replace the equipment; and ordered Sacaa to approve the replacement within five days. ACS CEO Duke Phahla said, 'We commend Sacaa's recognition of the urgency in replacing aged HBS equipment to ensure uninterrupted security operations at airports. We have always maintained that passenger safety and continuity must come first, and this step reflects that shared concern.' The matter stems from May 2023 when Acsa announced its intention to terminate ACS's long-standing role as the provider of HBS services and to insource the function and subsequently issued a R3.15 billion tender for the procurement of new baggage screening equipment opening the floodgate of legal suits amongst the parties. Following the Gauteng High Court granting for the replacement, Acsa said it contested the ACS's handling of baggage as it was in contravention of the Constitution (which states that all organs of state must engage in procurement that is fair and transparent), the ACSA Act, the Public Finance Management Act, which requires that all airport charges levied to passengers must be approved by a Regulating Committee. Acsa's manager for Communications, Sisa Majola, said in response to enquiries, "The charges currently being levied by ACS are not regulated. The next development in the proceedings will be the hearing of the appeal against the court's order to interdict Acsa from implementing its insourcing of Hold Baggage Screening and the procurement of the screening." Majola said it was crucial that the ACS has challenged Acsa's decision to insource/perform Hold Baggage Screening Services, and a court of law has not heard this matter, nor has ACS been confirmed as the entity entitled to render Hold Baggage Screening Services. Acsa confirmed it would comply with the back-up replacement court order and continue with the appeal, as it was granted leave to appeal by the High Court and would continue to defend the review proceedings. ACS's Phala said, 'While the legal process runs its course, our focus remains on ensuring uninterrupted, world-class baggage screening services for passengers and airlines. We remain committed to working co-operatively with Acsa, Sacaa and all stakeholders to safeguard operational integrity and uphold aviation security standards." In its response, Sacaa said there are no ongoing discussions between the Sacaa and ACS and that further determinations would have to be from court pronouncements.
IOL News
5 days ago
- Business
- IOL News
Ninety One's assets under management rise 4% amid challenging market conditions
Ninety One's CEO Hendrik du Toit said the group regained positive funds flow momentum on the second half of its financial year to March 31, 2025. Image: Supplied Ninety One's share price was one of the biggest movers on the JSE Wednesday after it announced an increase in global assets under management by 4% to £130.8 billion (R3.15 trillion) in the year to March 31, buoyed by a stronger second half performance. Full year net outflows for the JSE- and London-listed group that was spun off Investec in 2020 came to £4.9bn, following first half net outflows of £5.3bn and net inflows of £0.4bn in the second half. The share price gained up to 6.7% on the JSE to R41.54 on Wednesday, bringing the year-to-date gain to over 13%. 'Ninety One regained positive flow momentum in the second half. Business conditions improved in the final quarter,' founder and CEO Hendrik du Toit said at the release of the results. He added in a statement it was a 'robust financial performance,' with an operating profit margin of 31.2%. A final dividend of 6.8 pence was declared, bringing the full year payout to 12.2 pence a share. 'Conditions remain challenging, but business momentum has improved,' said Du Toit. With a 32.6% shareholding, their staff were motivated and committed, he said. Average assets under management increased 4% to £129bn. Du Toit said their previously announced transaction with Sanlam is on track. 'While we expect economic uncertainty and market volatility to persist, we are encouraged by early indications that demand is shifting towards our offering,' he said. The higher closing AUM was due to a positive market and foreign exchange impact of £9.7bn (2024: negative £6.1bn), which outweighed net outflows. The institutional net outflows were mainly from fixed income and multi-asset strategies, while advisor net outflows were mainly from equity strategies, followed by multi-asset. The institutional channel saw notable positive inflows in the second half. The UK client group's net outflows were driven by some large clients rebalancing their portfolios with reduced allocations to certain equity strategies. Within the Americas clients, outflows were largely due to client restructurings, but there was a return to net inflows from Latin American institutional clients compared with the prior year. For the Africa client group, the second half saw some sizeable client wins into global equities, while the Europe client group's positive second half was driven by fixed income and European and Asian equity strategies. In terms of investment performance, Ninety One's short and medium-term performance had improved, with one- and three-year outperformance closing at 68% and 59% respectively, compared with 46% and 43% at March 31, 2024, respectively. The five and ten-year outperformance closed at 72% and 81% respectively, compared with 64% and 76% at the same time last year, respectively. The firm-wide outperformance was calculated as the sum of the total market values for individual portfolios that have gross positive active returns, expressed as a percentage of total AUM. The UK client group AUM fell by 13% to £21.13bn, while that for the Asia Pacific clients increased by 14% to £23.62bn. AUM from African clients was up 9% to £55.68bn, while AUM from clients in Europe increased 3% to £14.96bn.
IOL News
12-05-2025
- Business
- IOL News
ACS secures baggage handling monopoly as court dismisses ACSA appeal
The fallout between ACS and Acsa stems from the airport manager's decision in 2023 to terminate ACS' longstanding role in providing baggage screening services with the intention of taking over these services directly. Banele Ginidza The Aviation Co-Ordination Services (ACS) has celebrated its hold on the over multi-billion rand baggage handling monopoly after the Gauteng Division of the High Court dismissed the Airports Company of South Africa's (Acsa) appeal against an order that stopped it from procuring baggage screening equipment. In a statement on Friday, ACS welcomed the high court decision, saying it said confirmed that the critical replacement of aged Hold Baggage Screening (HBS) equipment may proceed at key international airports, which is crucial to ensure public safety and airport efficiency. The ruling upholds the High Court's mandamus order of 5 November 2024, requiring Acsa and the South African Civil Aviation Authority (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. The fallout between ACS and Acsa stems from the airport manager's decision in 2023 to terminate ACS' longstanding role in providing baggage screening services with the intention of taking over these services directly. The ACS said Acsa went ahead with this even though it is the airlines, and not Acsa as the aerodrome operator, that is responsible for providing HBS services at airports (with ACS legally mandated by the airlines to operate and manage HBS). ACS said it had provided uninterrupted, efficient and cost-effective HBS operations at Acsa airports for more than 20 years – with its operations commended as an example of global best practice. In response, ACS approached the courts to review and set aside Acsa's decision to insource HBS services including issuing a R3.15 billion tender for HBS equipment. The company said to avoid service disruption while this main matter is under review by the courts, ACS applied for urgent relief to ensure that it could continue upgrading aging HBS equipment at OR Tambo and King Shaka airports. The High Court granted this request in November 2024, stipulating that ACS is permitted to replace four Level 3 back-up HBS units at OR Tambo and King Shaka International Airports and that SACAA must approve the replacement and allow the process to be completed within ten days of the order being made. ACS said Acsa and SACAA had sought to suspend these directives through an appeal, arguing that they should not be enforced while broader legal proceedings, mainly the review of Acsa's plan to insource HBS services, are ongoing. However, the High Court judgment has dismissed this appeal, affirming that these orders remain operational and enforceable during the review process. 'The replacement of these units is essential to maintaining uninterrupted, internationally compliant baggage screening services at South Africa's major airports,' said Duke Phahla, CEO of ACS. 'We are pleased that the Court has recognised the urgency and importance of this work, and that we can now move forward in the interests of all airline passengers.' BUSINESS REPORT
The Citizen
04-05-2025
- Business
- The Citizen
Acsa loses appeal for control of baggage screening services at airports
Acsa wants to take control of baggage screening and has issued a R3.15 billion tender for it. The Airports Company of South Africa (Acsa) and the South African Civil Aviation Authority (SACAA) have suffered a legal blow in their battle with Aviation Co-ordination Services (ACS) to take control of baggage control screening. This comes after the Gauteng High Court dismissed the urgent appeal by Acsa and SACAA on Friday, which barred it from bidding for or purchasing baggage screening equipment. Judgment on airport equipment The court judgment by Jude Twala upholds the high court's order on 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. ALSO READ: Acsa interdicted from adjudicating and awarding R3bn tender Acsa baggage services In May 2023, Acsa announced plans to terminate ACS's more than two-decade role in providing baggage screening services. It said it intended to take over these services directly. Acsa argued that it was supposed to be responsible for the baggage services, and that ACS had been running the services without a formal tender, which means Acsa was in breach of the procurement rules for state-owned entities. However, ACS contends that the airline is responsible for providing HBS services at airports, with ACS legally mandated by the airlines to operate and manage the services. ACS appeal In response, ACS approached the courts to review and set aside Acsa's decision to insource HBS services, including issuing a R3.15 billion tender for HBS equipment and force SACAA to approve the replacement of four backup baggage screening equipment at OR Tambo and King Shaka airports. In November last year, the court ordered that SACAA must approve the replacement and allow the process to be completed within 10 days of the order being made. Acsa and SACAA then sought to suspend these directives through an appeal, arguing that they should not be enforced while broader legal proceedings, mainly the review of Acsa's plan to insource HBS services, are ongoing. However, the High Court judgment on Friday dismissed this appeal, affirming that these orders remain operational and enforceable during the review process. 'The replacement of these units is essential to maintaining uninterrupted, internationally compliant baggage screening services at South Africa's major airports. We are pleased that the court has recognised the urgency and importance of this work, and that we can now move forward in the interests of all airline passengers,' said Duke Phahla, CEO of ACS. ACSA tenders Acsa has a fraught history of dealing with large tenders. In August last year, despite stating that there were no allegations of irregularities, Acsa suspended its chief information officer in relation to a technology tender. Mthokozisi Mncwabe had been placed on precautionary suspension after 'prima facie evidence of wrongdoing' was uncovered in a biometric and digital identity technology project. This came despite Acsa previously stating before the High Court that there were no irregularities in the procurement processes. The contract, worth R115 million, was awarded to French multinational technology company IDEMIA, with a requirement that at least 30% of the value be subcontracted to a South African, black-owned enterprise. IDEMIA partnered with the local company InfoVerge, but the relationship eventually deteriorated. Security tender Also last year, the court halted Acsa from awarding an airport security tender to a non-compliant service provider since 2018. This followed allegations made by the South African Transport and Allied Workers' Union (Satawu) that Acsa unlawfully awarded the contract to Checkport SA, 'a foreign-owned company that has no requisite expertise'. NOW READ: Acsa wants a look over in fight over baggage screening services
