AAR Corp. SAA Bribery: $55.6 Million FCPA Settlement for R1.2 Billion Contract

ProvenZuma EraConvicted & Sentenced

Overview The Accused Institutions Consequences Paper Trail

US aviation company AAR Corp. bribed SAA Technical officials — including board chair Yakhe Kwinana — to secure a $125 million contract. Agent Julian Aires carried cash to SA and used code names. AAR paid $55.6M to settle with US DOJ and SEC.

R1 billion

SOE Looting

AAR Corp., a US-based aviation services company, conspired with local partner JM Aviation to bribe officials at South African Airways Technical (SAAT) between 2016 and 2020. Third-party agent Julian Aires arranged bribes to at least three SAAT officials, including board chairwoman Yakhe Kwinana and procurement head Nontsasa Memela. Bribes were disguised as "consulting fees" and "success fees." Officials were referred to by code names: "Cuz," "Sisi," and "Boetie." Aires frequently carried cash to South Africa. The $125 million contract was for inventory management and aircraft component repair. The Zondo Commission concluded the contract was "unlawful, irregular and unfair." In December 2024, AAR entered an 18-month non-prosecution agreement with DOJ and paid $55.6 million ($26.3M criminal penalty + $29.2M SEC disgorgement). Agent Julian Aires pleaded guilty in July 2024.

The Accused

Implicated Institutions

Consequences

convictioncompleted2024-07-15

Julian Aires pleads guilty to FCPA conspiracy

First individual conviction in SAA bribery scheme.

financial recoverycompleted2024-12-20

AAR Corp. pays $55.6M FCPA settlement ($26.3M penalty + $29.2M disgorgement)

First major FCPA enforcement linked to SAA state capture. Sends signal to international enablers.

AAR Corp. SAA Bribery: $55.6 Million FCPA Settlement for R1.2 Billion Contract | 4FactSake