THERE is no law to govern the operations of Bahrain Airport Company (BAC), revealed findings of an audit report made public yesterday.
This means the company has no legal binding status to those under contract with it for usage of facilities at Bahrain International Airport.
The 2016-2017 Administrative and Financial Audit Bureau report said the company required authorisation by law to run, operate and collect payments for airport usages in line with Article 117 of the constitution.
“All of the contracts and agreements signed by BAC could be nullified since its existence is not governed by an establishment law granting it authorisation,” said the report.
“The current situation doesn’t help organise operations in the airport or collect payments for providing services.
“BAC did not even draw up a clear guideline for airport operations until May this year, governing general policies to operate and manage the airport.
“The company has not even considered addressing issues raised by the Civil Aviation for over two years, which affects safety.”
The report also showed that BAC has never taken action over late payments by firms that lease or rent property in the airport.
“It would just exempt the companies of late payments after a certain time period or reduce the owed amounts, which has resulted in many not bothering to pay for long periods of time,” stated the report.
“BAC is owed BD1.9 million for departure services from national carrier Gulf Air, which has not yet been collected.
“The company has also established a hospitality company fully owned by it in April this year despite knowing that it was not worthy in line with studies while having no experience in the sector itself.”
It added that new passenger bridges purchased in 2015 at a cost of BD1.1 million were in need of regular maintenance.
Meanwhile, the report found that Alba’s storage units failed to follow-up on supplies purchased from overseas providers.
It said the company made payments in full but in most cases never checked the quantities entering its stores - adding that payments were made for supplies that never reached.