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SAA may lose case against former CEO

23 Sep 2011

South African Airways has been scrambling in the Johannesburg High Court to try and avoid an embarrassing legality that could scupper its attempts to reclaim millions from its former chief executive Khaya Ngqula.

Ngqula's legal team have found a clause in the service contract that was signed between SAA and Ngqula that says the Pretoria High Court has exclusive jurisdiction over legal matters should a dispute arise between the two parties.

However, SAA lodged the matter in the Johannesburg High Court and as a result, its advocate Vincent Maleka tried to convince Acting Judge Nazeer Cassim to transfer the matter from Johannesburg to Pretoria.

SAA has filed two summons against Ngqula in the Johannesburg High Court, the first for R27,4-million relating to the retention bonus scheme and the second for $3,6-million (R27-million) spent by him recruiting Argentinian golfer Angel Cabrera to be the face of SAA's advertising campaigns for 2007 and 2010.

However, Ngqula's advocate Gerald Farber objected to the procedure saying that moving it to Pretoria would prejudice his client.

Should the matter by dismissed by Judge Cassim, SAA would have to issue new summons and Ngqula could use prescription to have the matter withdrawn as the three-year limit on bringing legal action against an individual would apply.