Zimbabwe’s Ministry of Environment, Climate and Wildlife plans to attach South African Airways (SAA) assets for allegedly owing US$2.4 million in unpaid fees, despite the Zimbabwean government owing the airline $59 million in blocked funds, reported BusinessDay.
According to the report, about US$62 million in revenue earned by SAA in Zimbabwe has been blocked since 2016 due to foreign exchange repatriation challenges.
SAA has been negotiating with the Reserve Bank of Zimbabwe (RBZ) and its finance and economic development department to unblock the funds.
SAA claims it has already paid US$877,435 towards the debt but Zimbabwe’s environment ministry proceeded with legal action and obtained a court order for US$1.6 million.
The ministry obtained a writ of execution against SAA’s property in Zimbabwe on October 8, 2024.
According to SAA, this is despite a senior Zimbabwe official having agreed in a phone conversation with CEO John Lamola to an offset approach.
The South African airliner views the ministry’s actions as malicious and disruptive, proposing that the debt be offset against the blocked funds. Said Lamola:
The conduct of the Ministry of Environment in Zimbabwe is contrary to the letter and spirit of our protracted engagements, first with the Reserve Bank of Zimbabwe and later with the Ministry of Finance, on collecting the major debt of around R1bn due to SAA.
Our doors of engagement remain open. We are optimistic that an amicable solution to the current impasse will be found, and that Zimbabwe’s Ministry of Environment will desist from its threatened action against SAA’s operations in Zimbabwe.
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