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UAE Consortium Awarded Afghan Contracts Under Scrutiny

Questions are being raised about three airport operations projects awarded to a UAE-based consortium, GAAC/G42, according to sources who say the consortium was registered as a foreign firm in Afghanistan a week after being awarded the projects.

The company was registered in the UAE on October 28 before winning contracts from the National Procurement Commission for security, advanced technology systems and ground handling services for all international airports in Afghanistan on October 29. And, the company was registered in Afghanistan on November 5.

The $47 million security service contract, and other contracts including information technology and ground handling ( the servicing of an aircraft while it is on the ground and parked at a terminal gate of an airport) were awarded to the firm on October 28, according to aviation sector’s authorities.  

The Civil Aviation Authority does not consider it necessary for the registration of the consortium in Afghanistan to occur before awarding contracts to it. The authority said that the consortium was operative in the UAE under another name. 

“They decided to change the G42 name to GAAC Holding Group so that it can represent all of them. It was a change in name,” said Mohammad Qasim Wafaeezada, head of the Civil Aviation Authority.

The information provided on GAAC consortium website shows that G42 Smart Nation and AIS have been mentioned as members of the consortium. This was confirmed by the National Procurement Authority after the contract was awarded. But the Civil Aviation Authority says four other companies—Smart Nation, Afroport, Longport, and Hart—are members of the consortium.

“Longport and Hart are conducting security service. Ground handling service is done by Afroport,” said Wafaeezada.

Critics said the G42 company lacks the required capacity and experience for civil aviation projects.

“When companies get together it means that they share a percentage of activities, like 10, 15 or 30 percent. The main company should have the main responsibility and the capacity (for the specific job) based on international law and international procurement procedures,” said Murtaza Noori, an expert in procurement the Independent Joint Anti-Corruption Monitoring and Evaluation Committee (MEC).

“We did not need a leading company (in a consortium) or all the members of a consortium to have the specific experience required for the contract. The consortium itself as a legal institution has the required expertise for providing the service,” Wafaeezada said.

The Afghan Civil Aviation Authority recently denied there was a connection between the G42 company and an Emirati sheikh. The investment facilitation unit of the Administration Office of the President, which has played a prominent role in recognizing the company and holding talks with its officials, did not comment on the process. 

“The contract has been given to an Arabic company in contravention of the law. The contract should have been put out for bidding,” said Mohammad Akbar Sultanzada, head of the communication committee of the Wolesi Jirga, the Afghan parliament. 

Sources told TOLOnews that at least one company who previously held a contract for airport services has lodged a complaint at the International Chamber of Commerce over the “illegal cancellation” of their contract by the Afghan government, which, if true, would require the government to pay fines.

UAE Consortium Awarded Afghan Contracts Under Scrutiny

The company was registered in the UAE on October 28 before winning contracts from the National Procurement Commission on October 29. 

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Questions are being raised about three airport operations projects awarded to a UAE-based consortium, GAAC/G42, according to sources who say the consortium was registered as a foreign firm in Afghanistan a week after being awarded the projects.

The company was registered in the UAE on October 28 before winning contracts from the National Procurement Commission for security, advanced technology systems and ground handling services for all international airports in Afghanistan on October 29. And, the company was registered in Afghanistan on November 5.

The $47 million security service contract, and other contracts including information technology and ground handling ( the servicing of an aircraft while it is on the ground and parked at a terminal gate of an airport) were awarded to the firm on October 28, according to aviation sector’s authorities.  

The Civil Aviation Authority does not consider it necessary for the registration of the consortium in Afghanistan to occur before awarding contracts to it. The authority said that the consortium was operative in the UAE under another name. 

“They decided to change the G42 name to GAAC Holding Group so that it can represent all of them. It was a change in name,” said Mohammad Qasim Wafaeezada, head of the Civil Aviation Authority.

The information provided on GAAC consortium website shows that G42 Smart Nation and AIS have been mentioned as members of the consortium. This was confirmed by the National Procurement Authority after the contract was awarded. But the Civil Aviation Authority says four other companies—Smart Nation, Afroport, Longport, and Hart—are members of the consortium.

“Longport and Hart are conducting security service. Ground handling service is done by Afroport,” said Wafaeezada.

Critics said the G42 company lacks the required capacity and experience for civil aviation projects.

“When companies get together it means that they share a percentage of activities, like 10, 15 or 30 percent. The main company should have the main responsibility and the capacity (for the specific job) based on international law and international procurement procedures,” said Murtaza Noori, an expert in procurement the Independent Joint Anti-Corruption Monitoring and Evaluation Committee (MEC).

“We did not need a leading company (in a consortium) or all the members of a consortium to have the specific experience required for the contract. The consortium itself as a legal institution has the required expertise for providing the service,” Wafaeezada said.

The Afghan Civil Aviation Authority recently denied there was a connection between the G42 company and an Emirati sheikh. The investment facilitation unit of the Administration Office of the President, which has played a prominent role in recognizing the company and holding talks with its officials, did not comment on the process. 

“The contract has been given to an Arabic company in contravention of the law. The contract should have been put out for bidding,” said Mohammad Akbar Sultanzada, head of the communication committee of the Wolesi Jirga, the Afghan parliament. 

Sources told TOLOnews that at least one company who previously held a contract for airport services has lodged a complaint at the International Chamber of Commerce over the “illegal cancellation” of their contract by the Afghan government, which, if true, would require the government to pay fines.

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