NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION 1365
Dr S M van Dyk (DA) to ask the Minister for Public Enterprises:
1. Whether he recommended the chief executive officer (CEO) of the SA Airways (name furnished) to the Cabinet; if so, what are the relevant details; if not,
2. whether he personally considered appointing him; if not, what is the position in this regard; if so, what are the relevant details;
3. (a) how much money has the said person received since his appointment as CEO until 1 August 2008 in respect of (i)(aa) salary and (bb) salary increases, (ii) performance bonuses, (iii) retention bonuses, (iv) allowances, (v) subsidies and (vi) any other form of remuneration, (b) what are the details in respect of each of the said categories, (c)(i) how much money in any form of bonuses, including retention bonuses, was paid out to him and (ii) when was it paid out and (d)(i) how much money was paid out annually to the (aa) CEO, (bb) senior management and (cc) directors of the SAA during the period 1 April 2002 until 31 March 2008 and (ii) what are the relevant details;
4. whether the CEO's contract can (a) expire or (b) be cancelled by his employer; if not, (i) when was he appointed, (ii) until when is his contract valid and (iii) why not, in each case; if so, what are the relevant details;
5. whether he is considering to replace the CEO; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
1. The Minister recommended the full current board of Directors of SAA to Cabinet as is required. The designated CEO was part of this recommendation. The board of directors has in all cases been approved by Cabinet.
2. At the time of the appointment of the current CEO, SAA was a Subsidiary of Transnet and as a consequence fell under the control of the Legal Succession Act (1989). A decision in respect of the appointment of the current CEO was taken by the SAA Board after consultation with the Transnet Board and the Minister of Public Enterprises.
3. (a)(i)(aa)(bb)(ii-vi)(b)(c)(i-ii)(d)(i)(aa)The table below indicates SAA CEO's salary and other forms of remuneration that were paid out for the respective years.
|
Surname and initials: Mr Ngqula K | ||||
|
Description |
2004 - 2005 |
2005 - 2006 |
2006 - 2007 |
2007 - 2008 |
|
Salary and Fund Contributions |
R2,295,000.00 |
R5,000,000.00 |
R5,000,000.00 |
R5,000,000.00 |
|
Retention Premium |
0 |
0 |
0 |
R687,669.40 |
|
Performance Bonus |
0 |
R1,850,000.00 |
0 |
0 |
|
TOTAL |
R2,295,000.00 |
R6,850,000.00 |
R5,000,000.00 |
R5,687,669.40 |
(bb)(cc)(ii) Due to the volume of information required, the Honourable Member is requested to consult SAA's previous Annual Reports tabled in Parliament during the years in question.
4. (a)(b)(i-ii) The contract between the current CEO and SAA will expire at the end of its term or it could be terminated if considered necessary. The current CEO was appointed on the 15th October 2004 and the current contract is valid until October 2010
At this stage no consideration is being given to replacing the CEO of SAA. The airline operates in a tough commercial environment and the current management team and CEO continue to sustain SAA's high service standard in a difficult market environment. In addition, the current management team and CEO should be commended on the implementation of a comprehensive and challenging restructuring programme that has enabled the airline to post an operating profit of R123 million prior to restructuring costs at the end of 2007/08.
