DPE’s SAA board announcement a ‘shoddy attempt to legitimise illegitimate process’

The department of public enterprises’ appointment of an interim South African Airways (SAA) board has been highly criticised by the National Union of Metalworkers of South Africa (Numsa), who claimed on Tuesday it “stinks of corruption”.

The department announced on Monday a new board, chaired by former tourism minister Derek Hanekom, effective from 15 April.

The board will serve until the introduction of the strategic equity partner, Takatso Consortium, which is poised to acquire a 51% majority stake in SAA.

ALSO READ: Derek Hanekom appointed new SAA interim chair

It will provide strategic leadership to the transitional management team and oversee the integration of Takatso Consortium, said the department in a statement.

“The interim board remains dedicated to tackling key priorities, including implementing cost-saving measures, expanding route networks, elevating customer satisfaction, and expediting all requisite regulatory preparations to ensure a seamless transition as the Takatso Consortium assumes its role as the majority shareholder.”

SAA board announcement ‘shoddy’

The announcement has been met with criticism from Numsa, which described the announcement as “a shoddy attempt to legitimise and illegitimate process”.

Numsa questioned why the old board was not doing the Takatso handover.

“Why replace an interim board, with another interim board, which will have to be replaced anyway, once the Takatso deal is finalised?”

ALSO READ: Ex-SAA board member Yakhe ‘Fat Cakes’ Kwinana fined R6.1m, booted as chartered accountant member

“It is Numsa’s view that once Takatso takes over, there will be a flash sale of SAA’s assets because Takatso has no money. They will need to raise the money to fund the airline, and selling its assets, is the fastest way to do that.”

Numsa said it would write to the chairperson of the portfolio committee on Public Enterprises
Khaya Magaxa to demand that they set up a meeting with the former DG of the DPE and all unions at SAA.

“The entire process must be subjected to public scrutiny and this must be done, before the deal is finalised.”

‘Accountability and transparency’

In an interview with Newzroom Afrika on Tuesday, Hanekom said South Africans had nothing to worry about as far as the new board is concerned.

Hanekom said there was no sinister motive behind the appointment of the new board, adding that no wrongdoing, if there is any, would be covered either.

“In meeting our obligations as a board, we are committed to principles of accountability and transparency. If there is any information you don’t want to make publicly available there has to be a good reason for that,” said Hanekom.

ALSO READ: SAA gets R1bn allocation to settle outstanding obligations

“We will be open about our operations and decisions, it’s a business, it has to be operated very carefully. That this board was appointed to cover up some wrongdoing in the past, it is not the case. We have people on the board with integrity. If there is any requirement of me covering up any wrongdoing then I was a wrong appointment. I would never cover up any form of wrongdoing. We have been appointed as an interim board and we have to deal with the issues that are in front of us.”

Hanekom said SAA would make public its financial statements in the next few weeks.