Finance Minister Malusi Gigaba Photo: INLSA
Finance Minister Malusi Gigaba Photo: INLSA

Doubts over whether new SAA boss has signed contract

By Staff Reporter Time of article published Aug 28, 2017

Share this article:

Finance Minister Malusi Gigaba committed in his 14-point plan to appoint the SAA chief executive by July 31. This was a key "action item" in the plan and a condition imposed by some of SAA’s lenders.

Gigaba had assured the country on numerous occasions that Vuyani Jarana had been appointed as the CEO, the DA said in a statement.

Yet it is "quite astounding that the SAA board chair does not seem to have knowledge of any signed contract, which leads us to believe that Mr Jarana may not have signed the contract yet", the DA said.

On August 23, Myeni informed Parliament’s standing committee on public accounts that she did not have a date for when Jarana would take up the CEO position. 

Myeni told Scopa that "he has accepted the offer" and that "we are hoping that he will start on the first of September".

"The CEO’s appointment is important because if the CEO is not appointed, this could result in a default that would require all remaining R14.6 billion of bank loans to be repaid immediately.

"SAA has not had a permanent CEO for more than two years and has run at massive losses amounting to R6.1 billion during that period. 

"It is critical that a permanent CEO be put in place to take control and implement robust cost-cutting and revenue improvement measures."

Gigaba first annnounced on August 3 that Jarana has been appointed South African Airways chief executive and that he would commence his duties "after his current employer has officially released him".

On Friday, Gigaba expressed concern at the governance and balance sheet problems of various state-owned companies.

In a statement issued after a meeting on Friday between Gigaba and his executive team and the chief executive initiative steering committee members, the National Treasury said Gigaba told business leaders that measures were being taken to address the financial problems at SAA.

“There is a new chief executive who has been appointed. We are paying close attention to strengthening the board of SAA and appointing the requisite skills. 

"The government is exploring options with regards to the establishment of a proper capital structure for SAA,” Gigaba said.

Share this article: