GACA fails to collect SR812m in KAIA rents


Saudi Gazette report

JEDDAH — A supervisory body in Makkah province has uncovered failure by the General Authority of Civil Aviation (GACA) to collect SR812 million in accumulated rents from tenants at King Abdulaziz International Airport in Jeddah.

It was discovered rent was not collected from some of the tenants for as long as 25 years, the Arabic daily Al-Madina said on Sunday quoting a 10-page report compiled by the supervisory body.

However, the newspaper did not name the supervisory body, which accused GACA of serious lapses in collecting rent dues from the investors at the airport.

The report asked GACA to question the department in charge of collecting rents and to apply the rules and regulations on tenants who have not paid their rents all these years.

Fines should be imposed on the tenants who failed to pay the rent on time, the report said.

The report said the airport had outstanding rent dues that dated as back as 25 years. Some of tenants and investors were still occupying their locations though their rental contracts had expired more than two years ago.

It said GACA had no plans or effective programs to collect delayed rents or to use its legal right in pursuing the tenants who defaulted in payments.

The report said seven investment companies still occupied space in the commercial area of the airport even though their rental contracts had expired long ago. The activities of the companies ranged from hotel services, transport, catering to communications.

Al-Madina said it contacted GACA spokesman Abdullah Al-Khiraif for clarifications on the report, but he did not so far answered its queries even though he had promised to do so.