JEDDAH: The Administrative Court in Jeddah yesterday issued a verdict asking the General Authority of Civil Aviation (GACA) to pay SR10 million to Arabian Dayna Company and canceled the SR18 million fine it had imposed on the company four years ago.
GACA awarded a SR400 million contract to Arabian Dayna to carry out firefighting and rescue operations at King Abdulaziz Airport in Jeddah for five years.
In its petition, the company said it had carried out all works in accordance with the contract terms. But GACA never paid Arabian Dayna the full amount and withheld SR16 million, saying the company delayed the work.
The company then filed a lawsuit against GACA demanding payment of the money and damages.
A GACA representative presented a reply to the court saying the Ministry of Finance had reduced the value of the contract by 10 percent. He also asked the court to fine the company for violating the terms of its contract.
Arabian Dayna said it had been informed about the reduction in contract value only after completing the work. After several hearings the court asked the company to pay SR18 million to GACA.
A judicial source said GACA had failed to produce any document in the court in order to prove its claim against the company.
In its final verdict, the court asked GACA to pay SR10 million to the company and rejected the demand to impose a fine.
