McDan Warehouse Demolition and its Broader Implications for Business Confidence and Press Freedom in Democratic Ghana

On July 28, 2025, a warehouse owned by the McDan Group, led by Ghanaian entrepreneur Dr. Daniel McKorley, was demolished by individuals alleged to be operatives of Ghana’s National Security. The facility, located near Action Chapel on Spintex Road in Accra, was still under construction and reportedly unoccupied, yet the demolition was executed without prior notice or public explanation.

Eyewitnesses described the operation as forceful and abrupt, involving heavy machinery and military-style vehicles. Construction workers living on-site were denied access to retrieve personal belongings, and the site was declared a “National Security Zone,” raising concerns about the legality and proportionality of the action.

The demolition is believed to be linked to a longstanding land dispute between McDan Group and the Ghana Airports Company Limited (GACL). The property in question had been leased to McDan subsidiaries since 2009, 2010, and 2012 in separate documents, but disagreements over lease terms and outstanding rent led to legal proceedings earlier in 2025. An Accra High Court ruled on May 6, 2025, granting payment of entitlements over the 16 acres of land near Kotoka International Airport and another piece for repossession. The court cited repeated breaches of lease agreements and ordered McDan Group to pay $26,296 in accrued rent and GH¢50,000 in legal costs. Reports indicate that McDan Group has been making payments as ordered by the court.

Despite the court ruling, the demolition of the warehouse, which reportedly lies outside the scope of the disputed parcels, raises questions about procedural fairness. If the structure was not part of the repossessed land, its destruction may constitute an overreach, potentially violating property rights and due process. There may be rights accrued to the affected party, McDan, to seek redress in court, which could lead to a judgment debt against the state. As the president stated, “The demolition was not about repossession but payment as ordered by court of which the court has given.” He further apologized to the Ghana Journalists Association (GJA) for the pressure that may arise from the media but notably failed to extend an apology to eyewitnesses of the event.

The situation escalated when JoyNews journalist Carlos Calony was allegedly assaulted and detained while attempting to film the demolition. His phone was confiscated, and he was taken to the National Security headquarters before being released. Calony later reported that the Chief Executive of McDan Group and others were forced to kneel at gunpoint during the operation.

The assault on journalists has drawn condemnation from media watchdogs and civil society groups, who view it as a direct threat to press freedom. The Ghana Journalists Association called for accountability, while government spokespersons described the soldiers’ actions as “unacceptable,” promising investigations.

For the business community, the incident underscores the fragility of investment protection in Ghana. The abrupt demolition, coupled with the use of force and lack of transparency, sends a troubling signal to both domestic and foreign investors about the cost of doing business and the reliability of institutional safeguards.

Ghana has long marketed itself as a stable, rule-of-law-driven economy in West Africa. However, when legal disputes spill into extrajudicial enforcement and journalists are targeted for documenting public events, the country’s democratic credentials and investor appeal come into question.

Ultimately, the McDan warehouse demolition and its surrounding controversies reflect deeper institutional challenges. To restore confidence, Ghana must reinforce judicial independence, protect press freedoms, and ensure that state agencies operate within the bounds of legality and accountability. Anything less risks undermining both democratic governance and economic resilience, especially under a regime that claims to reset Ghana. Again, it’s of a fact that the demolition was not about repossession but payment as ordered by court, meanwhile McDan Aviation is almost through with payment as rent to GACL.

Osɔfo Nii Naate Atswele Agbo Nartey

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