SAA chaos deepens amid exec exodus

25/02/2010 Siza Mzimela new CEO of SAA during an interview at Sandton JHB. (888) Photo: Leon Nicholas

25/02/2010 Siza Mzimela new CEO of SAA during an interview at Sandton JHB. (888) Photo: Leon Nicholas

Published Oct 9, 2012

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Johannesburg - SAA was catapulted into fresh chaos yesterday with the resignation of its chief executive, Siza Mzimela, and two other general managers, just days after the government threw the airline a R5 billion lifeline.

Mzimela, who was chief executive for two-and-a-half years, stepped down along with commercial manager Theunis Potgieter and general manager for legal, risk and compliance Sandra Coetzee.

Mayihlome Tshwete, the spokesman for Public Enterprises Minister Malusi Gigaba, told Business Report that an interim chief executive would be appointed next week.

Tshwete said: “Siza has agreed to stay to help us with the handover period. There is some stability in that she’s going to be around.”

Among the reasons speculated for Mzimela’s departure is that SAA is expected to report a loss of more than R1.2bn for the financial year.

Hiccups in the airline’s relationship with the government also became apparent following a mass walkout of its board, including chairwoman Cheryl Carolus, last month.

SAA confirmed in a statement that it had accepted the resignations, adding that it had appointed acting executives where Potgieter and Coetzee had left a vacuum.

Tlali Tlali, the SAA executive for group corporate affairs, said the company had accepted Mzimela’s resignation, but he indicated that it would only become effective after at least two weeks.

Tlali said the departures would not destabilise SAA, as “different layers of management with strategic and operational competencies” and existing executive managers would work as a collective to provide the required leadership.

Mzimela said in an e-mailed letter to staff: “There has not always been a uniform understanding and appreciation [of SAA’s mandate] from stakeholders, which bred a myriad challenges.”

She said that her resignation was “not a random move. I have given this decision careful thought and feel that now is the best time to relinquish my position.”

Natasha Michael, the DA spokeswoman on public enterprises, said: “The airline is now well and truly in a crisis.”

She called for the privatisation of the airline, saying that the costs of running the national carrier far outstripped the benefits.

Vincent Masoga, the spokesman for the SA Transport and Allied Workers Union (Satawu), said Mzimela’s resignation came as a surprise but the union believed that she had resigned because of corporate governance challenges.

He would not name these challenges, citing a report that Satawu was compiling.

“It is our view that she was weak and not bold enough to take certain decisions. Something good is that she was approachable and always available to the union,” he said.

Marius Croucamp, the spokesman for Solidarity, which represents members at SAA Technical, said it was unclear whether Mzimela’s decision was a sign of “the captain jumping ship”.

“The continuing financial trouble and lack of efficient management is causing big uncertainty among employees”, he added, saying the trade union had called for the privatisation of the national airline.

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