The Special Investigating Unit (SIU) has secured a Special Tribunal judgment setting aside South African Airways’ (SAA) R85.3 million dry-lease agreement with Flyfofa Airways for a Boeing 737-300 freighter.
The Tribunal found that SAA extended the 36-month agreement from July 2019 without following a procurement process or obtaining the required National Treasury approval for a deviation.
The SIU said the decision was therefore not compliant with constitutional procurement requirements.
Flyfofa has been ordered to provide a detailed account of all payments received from SAA and costs incurred under the agreement. It must repay any amount found to constitute profit or unjustified enrichment, with interest at 11% per annum.
The Tribunal also criticised the conduct of the SAA Board, with Judge Fortuin saying the decision had a cost to the public.
The judgment has been referred to the Minister responsible for SAA and the airline’s directors for consideration of possible further action against those involved.
The Minister must report back to the Tribunal within 90 days on any steps taken.
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