South African Finance Minister Pravin Gordhan has said that award-winning South African Airways (SAA) needs a new board.
The statement was made on Tuesday during the EY and Johannesburg Chamber of Commerce and Industry (JCCI) business breakfast in Sandton.
The Finance Minister said the SAA needs a whole new experienced management team. The statement was made in response to a query made by investigator Paul O’Sullivan regarding corruption claims in the SAA.
“We will continue to find answers to the challenges at the moment,” he said.
“We must do political homework to get credible people on board.”
He added that the board could do with some ‘new blood’ as well as some existing members; people possessing the right skills who will help in the advancement of the airline.
Due to the deadlock between Finance Minister Pravin Gordhan and the chairman of SAA board, Dudu Myeni, the airline’s progress is gradually receding.
The South African government has in time past helped out the airline financially. It is estimated that about 14.4 billion Rands has been used to help bolster SAA.
Finance Minister Gordhan, however, said months ago that he does not intend for South African Airways to become a liability.
The SAA has been in a bit of scandal of late. The Organisation Undoing Tax Abuse (OUTA) recently warned the airlines of paying R50 million to BnP Capital.
“So now after this company fraudulently misrepresented their position and their ability to do the job – the job that wasn’t even necessary in the first place – they wanted a R50 million cancellation fee.
“She’s [Dudu Myeni] going to end up in jail if she does that as it will amount to corrupt activity in terms of the Prevention of Corrupt Activities Act. She’s sailing very, very close to the wind at this stage,” Outa’s Ivan Herselman said.