Südsudan
South Sudan's government is facing legal action for failing to honor a $1.05 billion settlement agreement with South Sudan Supreme Airlines Ltd., leading to renewed court proceedings scheduled for March 10, 2026.
The dispute originated at the East African Court of Justice (EACJ) in Arusha, Tanzania, where South Sudan Supreme Airlines had filed claims against the government. On February 13, 2025, both parties agreed to an out-of-court settlement, with the Ministry of Finance and Planning committing to pay $1,053,936,749.85 in 24 monthly installments of approximately $43.9 million each. Despite this agreement, no payments have been made to date.
Repeated interventions from senior officials have failed to prompt the Ministry of Finance and Planning to fulfill its obligations. On September 16, 2025, Sura Ali Lado, acting head of legal administration at the ministry, advised compliance to avoid renewed litigation and financial penalties. Further, on December 16, 2025, Justice Michael Makuei Lueth, Minister of Justice and Constitutional Affairs, urged immediate payment or renegotiation of the installment schedule. Vice President James Wani Igga also instructed former Finance Minister Barnaba Bak Chol to resolve the matter before the next court hearing. Despite these warnings, the settlement remains unpaid.
The failure to honor the settlement agreement has significant implications for South Sudan's financial credibility and its relations with international partners. The renewed application before the EACJ, initially scheduled for October 30, 2025, was postponed due to security concerns and is now set for March 10, 2026. Senior counsel Wani Santino Jada of Pan African Law Chambers LLP will represent the applicants, supported by a legal team of 19 lawyers.
This case underscores the challenges South Sudan faces in adhering to legal agreements and the potential consequences of defaulting on substantial financial settlements. Observers are keenly watching the proceedings, as the outcome could affect the country's economic stability and its standing in the international community.
