The Special Tribunal has set aside a 2019 extension of the South African Airways (SAA) dry-lease agreement with Flyfofa Airways for a Boeing 737- 300 freighter.

The tribunal found that the agreement was concluded without the required competitive procurement process and without National Treasury approval.

The agreement valued at approximately R85 million was concluded before SAA went into business rescue.

SAA has welcomed the tribunal’s ruling and says it is a clear affirmation that lawful procurement of public resources is not optional.

“South African Airways welcomes the special tribunal ruling, setting aside a 2019 extension of an aircraft lease agreement with Flyfoffa Airways for a Boeing 737-300 freighter,” says SAA Group Corporate Affairs Executive, Mphilo Dlamini.

Dlamini says the matter concerns a historical decision before South African Airways went into business rescue, valued at about R85 million, which the tribunal found that it was concluded without the required competitive procurement processes and without the approval of National Treasury.

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