Business 5.9.2016 07:43 am

DA to take action against Myeni’s SAA re-appointment

KEMPTON PARK, SOUTH AFRICA – FEBRUARY 1: SAA chairwoman Dudu Myeni during the announcement of its Annual Financial Results for the 2013/2014 Financial Year  on February 1, 2015 in Kempton Park, South Africa. (Photo by Gallo Images / Sowetan / Veli Nhlapo)

KEMPTON PARK, SOUTH AFRICA – FEBRUARY 1: SAA chairwoman Dudu Myeni during the announcement of its Annual Financial Results for the 2013/2014 Financial Year on February 1, 2015 in Kempton Park, South Africa. (Photo by Gallo Images / Sowetan / Veli Nhlapo)

The opposition says the chairperson has led the airline from one self-made crisis to the next.

The Democratic Alliance is planning to take action following the re-appointment of Dudu Myeni as chairwoman of the South African Airways (SAA) board and will announce details on Monday, says DA leader Mmusi Maimane.

Cabinet’s announcement that Myeni is being re-appointed undermines the principle of appointing the brightest and the best to serve the state and its entities, Maimane said.

Maimane said the move also disregards the need for good governance at state-owned enterprises (SOEs), especially SAA, which had become nothing more than a money-sucking leech, robbing the people and the fiscus of funds, he said.

“Cabinet, which only does the bidding of President [Jacob] Zuma at the expense of the people of South Africa and the country’s credibility, continues to make wrong decisions, Ms Myeni’s re-appointment being one of many in the past and many more to come,” said Maimane.

He said Myeni had presided over an SAA that had leapt from man-made crisis to crisis.

Last week DA shadow deputy finance minister Alf Lees said under Myeni’s watch as board chairwoman SAA had:
– failed to publish annual financial statements for 2014/15 with an apparent loss of R4.7 billion;
– failed to publish annual financial statements for 2015/16 with an apparent loss of R4 billion;
– apparently ran the state-owned airline at a R1.3 billion loss for the first quarter of 2016/17;
– irrationally suspended officials, apparently because they tried to curb corruption;
– cost the company millions of rand with no returns for the BnP funding debacle; and
– put SAA at risk of losing lucrative routes such as the Hong Kong route.

“This does not bode well for rebuilding confidence, especially in light of President (Jacob) Zuma’s power-grab of 13 strategic SOEs and the subsequent vote of no confidence in this decision by Futuregrowth Asset Management and Jyske Bank AS who have pulled out of lending money to Eskom,” Maimane said.

The details of the steps the DA planned to take would be revealed at a media briefing at Parliament on Monday morning.

– African News Agency (ANA)

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