It has emerged that Virginia Airport’s 10-year lease has still not been renewed because of an impasse in negotiations.
|||Despite assurances from the eThekwini council that the future of Virginia Airport was secure for the next 10 years, it has emerged that the airport’s lease still had not been renewed because of an impasse in negotiations between the eThekwini municipality, businesses and operators at the airport.
Last year, the decision to renew the airport’s lease elicited sighs of relief from aviation businesses based at the facility, which faced having to close shop and move.
This was after it was unanimously endorsed by the council, based on recommendations by the economic development and planning committee, chaired by the deputy mayor Nomvuzo Shabalala.
Municipal economic development and investment promotion head Shunnon Tulsiram said that when the committee deliberated on the matter last year, it was agreed in principle that the lease be extended for 10 years.
“There is a process that still needs to go to committee, but, to have a valid lease, the real estate department have entered into a month-to-month lease contract. At the moment, the lease has not been formally extended, which has created an impasse,” he said.
DA chief whip Dean Macpherson expressed disappointment in the municipality for dragging its heels in finalising medium-term leases with operators at the airport.
He said the delay had come from the legal department. “After owners were offered 10-year leases in a legal document, the municipality tried to revoke these leases and offer month-to-month leases. This, despite a council resolution which requires the finalisation of the 10-year leases,” he said.
Macpherson added that the legal department was holding on to an opinion that public participation was required for the leases applicable, owing to the opinion that the entity was valued at more than R10 million.
“However, this is incorrect as it is individual leases under R10m that are being signed, and therefore no public participation process is required,” he said.
Tulsiram said that in terms of due diligence, the legal department had the necessary mandate to ensure that an arrangement entered into was legal. “At this stage we do not have a 10-year lease; hopefully the process will be finalised in a month or so,” he said.
Durban Airshow spokesman Ray de Vries told The Mercury on Tuesday night that as far as he was concerned, Virginia Airport and the municpality had signed a lease for at least 10 years a few months ago.
The Mercury also learnt of a “secret meeting” that was to be held on Tuesday night between the municipality and the Airports Company of South Africa (Acsa) about moving Virginia Airport to King Shaka International Airport, but this could not be confirmed.
De Vries said he did not know about the meeting.
Asca spokesman Colin Naidoo also said he did not know anything about a secret meeting that involved Acsa. - The Mercury