At 20.10 hours on 20 June 1941 the unescorted and neutral Ganda was hit near the engine room by one of two torpedoes from U-123 off Casablanca. After the crew abandoned ship, she was hit by a coup de grâce at 20.19 hours. When the ship settled but did not sink, the U-boat surfaced and sank her by gunfire. As the Germans approached the lifeboats for questioning they noticed their mistake of sinking a neutral ship and left. After the patrol the war diary was altered upon order of the BdU.

The second officer, the chief engineer, a crewman and two passengers were lost and 19 others wounded. The master, 46 crew members and 14 passengers abandoned ship in a motorboat and a lifeboat. The 26 occupants of the lifeboat were picked up by a ship and landed in Lisbon on 22 June. The 42 occupants of the motorboat were later picked up by a Spanish trawler about 300 miles from the coast and landed at Huelva.