South African Airways must unwind an unlawful 2019 extension of its dry-lease deal with Flyfofa Airways for a Boeing 737-300 freighter after South Africa’s Special Tribunal set the contract aside. The ruling covers an agreement worth about R85.34 million and opens the way for recovery of money paid under the extended lease.
The tribunal found that SAA’s board extended the arrangement for 36 months without a competitive procurement process and without National Treasury approval or a properly recorded deviation. Flyfofa must provide a full account of all sums received from SAA and the costs actually incurred within 30 days, including during periods when the aircraft was grounded and any substitute service was used.
The order also provides for recovery of any profit or unjustified enrichment, with interest at 11%. The case has drawn attention because it centres on board-level procurement decisions at a state-owned carrier and the handling of cargo operations through a leased freighter. SAA welcomed the ruling, describing it as confirmation that lawful procurement of public resources is not optional.