South African Airways (SAA) has issued a media statement welcoming the Special Tribunal's ruling setting aside the 2019 extension of its dry-lease agreement with Flyfofa Airways (Pty) Ltd for a Boeing 737-300 freighter.
The matter concerns a historical decision before SAA went into business rescue, valued at approximately R85 million, which the Tribunal found was concluded without the required competitive procurement process and without National Treasury approval.
“SAA welcomes the ruling as a clear affirmation that lawful procurement, transparency, accountability and responsible stewardship of public resources are not optional standards; they are the foundation of institutional integrity,” says SAA Acting Group Chief Executive Officer, Ms Koekie Mbeki.
She added, “SAA also welcomes the Tribunal's order requiring Flyfofa Airways to account fully for all amounts received from SAA, all costs properly incurred, and the period during which the aircraft was grounded, including any substitute performance provided.”
The Tribunal's order is critical to determining the financial consequences of the agreement, enabling SAA to pursue any recovery legally due and advancing the process of holding responsible parties to account.
SAA will continue to cooperate fully with the SIU, the Special Tribunal and all relevant authorities in implementing the judgment and any consequential processes.
SAA will not stand in the way of lawful accountability. Where public resources were not properly protected, the organisation supports full scrutiny, consequence management and recovery where legally warranted.
Whilst the judgment relates to historical conduct predating the current Board and executive leadership, SAA's leadership remains resolute: governance failures must be confronted, controls strengthened and a culture of ethical, transparent and commercially disciplined decision-making embedded across the airline.
