The East African Court of Justice has scheduled an Oct. 30 hearing for a $1.05 billion case against South Sudan’s government, which is accused of reneging on an agreement to pay an airline company for its services.
The case, which highlights the cash-strapped government’s mounting debt crisis, will be heard by a five-judge bench at the EAC headquarters in Arusha, Tanzania.
According to court records, South Sudan Supreme Airlines Co. Ltd. and Pan African Law Chambers LLP filed the suit on April 8. They allege the government, through its Ministry of Finance and Planning, failed to make payments under a binding settlement agreement signed Feb. 13.
A copy of the agreement, obtained by Radio Tamazuj, acknowledges a debt of $1,053,936,749.85 owed to the airline. It required the government to repay the amount in 24 equal monthly installments of approximately $4.4 million, beginning Feb. 28. A separate 10% legal fee was payable directly to the law firm.
The legal filing states that despite repeated demands, the government “failed to honour any payments.” The applicants contend this failure breaches fundamental principles of the Treaty for the Establishment of the East African Community, including the rule of law and good governance.
The case, registered as Reference No. 16 of 2025, names South Sudan’s attorney general as the respondent. The Ministry of Justice was served with the court papers in April but did not file a response within the required 45 days, according to the filing.
A notice from the court’s acting registrar confirms the hearing will proceed on Oct. 30 before the five-judge panel. The notice states that if the respondent does not appear, the court will hear the case and issue necessary orders in its absence.
South Sudan Supreme Airlines is owned by businessman Ayii Duang Ayii. The company is represented by a team of 19 lawyers led by Senior Counsel Wani Santino Jada.
Defense lawyer Santino Wani told Radio Tamazuj that his legal team is prepared for the Oct. 30 hearing. “Once the ruling is made, we will determine how my client can get his rights,” he said.
A source familiar with the matter told Radio Tamazuj that the debt was incurred for services the airline provided to the South Sudanese army. The source did not provide details on the nature of the services or the period during which they were rendered.
When South Sudan gained independence in 2011, it started with no government debt. However, years of civil war and economic instability led the government to rely heavily on pre-financed oil deals, accumulating significant obligations.
A recent United Nations report stated that South Sudan has “largely stopped repaying” loans since 2018, with legal claims from international banks and commodity traders mounting.