‘Tainted’ SAA executive still in job despite Airlink saga

South African Airways (SAA) board chair Derek Hanekom denied that senior executive Carla da Silva along with other respondents were asked to resign.

This despite an inside source (claiming) on the back of serious allegations, it was the case.

“We may do so at our next scheduled meeting,” he said.

Da Silva is accused of the misappropriation of confidential information of competing carrier Airlink.

SAA-Airlink scandal

According to Waye Duvenage of the Organisation Undoing Tax Abuse (Outa), inaction first by SAA management and the board until now, implies tacit support for Da Silva’s behaviour.

“SAA’s chief executive was informed by Airlink of the situation at the turn of the year, but nothing was done for eight months,” said Duvenage.

In January, SAA chief executive John Lamola was first engaged by Airlink chief Rodger Foster about the data breach.

ALSO READ: SAA accused of breaking the law as it ducks money matters

In March, Airlink instituted civil action after (its) former employee Da Silva and staffers who followed her to SAA purportedly stole and distributed its sensitive commercial data.

A criminal complaint was also made with the South African Police Service (Saps) and has been escalated to the Hawks for investigation.

SAA has not responded to The Citizen on whether the company’s executive management would investigate or act upon the allegations made against Da Silva and other staff.

No good governance

Chad Thomas of IRS Forensic Investigations said not acting against serious allegations pointed to flawed governance.

He said corporate governance and ethics were a prerequisite in the operations of any company.

“Hence the incorporation of certain of Judge King’s recommendations in terms of corporate governance in the Companies Act. Fraud and corruption will thrive in the absence of good governance and ethics,” Thomas said.

Yet staff around Da Silva have purportedly taken note. Sources close to SAA said a number had made protected disclosures regarding the matter.

READ MORE: Reform needed for SOEs, say experts

All this is damaging the state-owned carrier’s already fragile reputation said Dionne Collett of Take Note Reputation management.

She said we lived in a time where there is a serious trust deficit among the public.

“Any action by staff or senior executives in an organisation who are acting without integrity will only deplete the brands’ s already diminished reputation.”

The Citizen reported recently that the SAA chief commercial officer warned of upcoming challenges should the airline not find a new suitor.

Collett said a sound reputation could make all the difference in whether or not a business is the first choice for investment or support in a highly competitive environment.

High court ruling

In the Western Cape High Court last week a ruling that addressed theft of incorporeal or intangible property may end up having great bearing on the Airlink-SAA Matter.

Technical Systems, a company that produces poultry feed chain technology, was awarded damages against a former employee Christiaan Kurz who, over time, siphoned off sensitive information for use in competing activity and eventually establishing his own business.

The ruling made Kurtz liable for over R40 million in legal fees and estimated losses of around R180 million.

Mirroring responses to accusations by SAA and Da Silva, Kurz claimed the information he took was also publicly available.

READ MORE: ‘SAA must delete data from Airlink’: Court orders airline to stop using info

Justice Mark Sher’s ruling disagreed.

Thomas said the cases were eerily similar.

He added the importance of protecting intellectual property rights and the Technical Systems’ case may set a precedent in the South African legal narrative.

Duvenage said SAA must take note of the Western Cape court ruling.

Prior to SAA unburdening its debt under business rescue, now-defunct Comair was awarded hundreds of millions of rand by the Supreme Court of Appeal (SCA) in 2019 for SAA’s uncompetitive behaviour as dominant market player at the time.