Supreme Airlines seeks international arbitration over debt with South Sudan govt.
Mr. Duang, a businessman and chairman of Supreme Airlines, which has been operating in the country since 2013, said on Monday that he has initiated proceedings to move forward with his case
By James Chatim
South Sudanese businessman Ayii Duang Ayii announced that his case with the government regarding accrued debts will be referred to international arbitration institutions.
Mr. Duang, a businessman and chairman of Supreme Airlines, which has been operating in the country since 2013, said on Monday that he has initiated proceedings to move forward with his case, which has been ongoing at the East African Court of Justice.
In a legal document issued by the East African Court of Justice (EACJ) – Preliminary Chamber, on October 11, 2024, based in Arusha, and seen by The City Review, the court ordered that the defendant, who is the Attorney General of the Republic of South Sudan according to the document, pay the plaintiff- Supreme Airlines Co. Ltd, the sum of 1,053,936,749,853 US dollars (one billion, fifty-three million, nine hundred and thirty-six thousand, seven hundred and forty-nine, eight hundred and thirty-three US dollars).
The Arusha-based court is considering the case, based on a request submitted by the plaintiff (Supreme Airlines) in 2018, accompanied by documents from the Supreme Court of South Sudan and the Ministry of Finance, confirming that the defendant owes Supreme Airlines more than $750 million in cash for services, food, and fuel provided by (the plaintiff) Supreme Airlines to (the defendant) the Government of South Sudan, represented by the Ministry of Finance, from December 15, 2013, to January 17, 2018.
Mr. Duang told The City Review that he had previously suspended the court proceedings due to the economic situation in the country, and also because the President of the Republic, H.E Salva Kiir Mayardit, was then the Chairman of the East African Community.
“We then reached an amicable solution with the Ministry of Finance, which is for the ministry to pay the total amount in installments over a period of 24 months (two years). The ministry stated it would pay approximately $43 million per month, starting in February 2025,” Duang said.
“But the ministry failed to pay the installment, and we are now in August. There is nothing more I can do. These sums are being demanded by international companies that have a partnership with Supreme Airlines, which supplied them with spare parts for the aircraft and carried out maintenance work. In addition, some companies are partial owners of a number of aircraft that Supreme Airlines operated,” he added.
Duang revealed that following his decision to reopen the case, it is expected that the case will be referred to an international arbitration institution. According to a legal advice, the businessman said: “If the government does not respond, the International Arbitration Court may decide to seize government assets to pay off the debts owed to Supreme Airlines within 14 days (two weeks) from the date of receipt of the request.”
Duang confirmed that he has already initiated these procedures. The East African Community Court of Justice, in its decision (Reference No. 14 of 2020), relied on a number of provisions of the East African Community Treaty, as stated in the judicial document issued in November 2024, as follows: “The Court declares that the Respondent’s failure to do anything regarding the payment of the debts, thereby violates its commitment to the fundamental and operational principles of the East African Community, specifically the principles of good governance and the rule of law, guaranteed by Articles 6(d), 7(2), 27(2) and 151 of the East African Community Treaty; as well as Articles 2(1)(3) and (3) and 54(2)(b) of the Protocol Establishing the East African Community Common Market.”
According to the same document (Reference No. 14 of 2020), “The court ordered the defendant to pay the plaintiff total amounts of: 764,542,245.36 US dollars, 9,332,254.00 euros, equivalent to 12,820,557 US dollars, and 015,744,143.00 South Sudanese pounds, equivalent to 33,357,774.45 US dollars, for a total of 810,720,576.81 US dollars, in addition to the 30% ordered by the court, which amounts to 243,216,173,043 US dollars. The total amount claimed by the applicant, including compensation at a rate of 30% from December 15, 2013 to January 17, 2018, amounts to 1,053,936,749,853 US dollars (one billion and three Fifty million, nine hundred and thirty-six thousand, seven hundred and forty-nine, eight hundred and thirty-three US dollars.
Attempts to reach the Ministry of Finance for comments were unsuccessful by the time of press.
