DA calls on Gigaba to dismiss Myeni immediately
D-day has now arrived for Dudu Myeni to vacate the SAA Board Chair position.
Despite the evidence of her incompetence and the dire straits that the airline has been managed into under her watch, National Treasury has reportedly asked Myeni to remain as SAA Board Chair until the Annual General Meeting (AGM) probably sometime in November 2017.
The DA have therefore written to Finance Minister, Malusi Gigaba, to demand that he dismiss Myeni with immediate effect.
This extension of Myeni’s office term contradicts reassurances Gigaba gave that Myeni would not remain as the SAA Board Chair.
Former Finance Minister, Pravin Gordhan, unfortunately reappointed Myeni as the SAA Board Chair, on the proviso that her appointment was only for one year.
A statement by the Department of Government Communications on the 2nd of September last year stated that “Eleven new non-executive directors have been appointed to the Board of SAA for a three year period starting from 1 September 2016. Ms Duduzile Cynthia Myeni, the current Chairperson of the Board of SAA, has been reappointed for a period of one year.”
Since his appointment, Gigaba has indicated that Myeni’s term as SAA Board Chair would come to an end:
On the 15th of June 2017, Gigaba stated ‘At the upcoming AGM, we will attend to the matter of appointing her successor…’ and on the 4th of August 2017, Gigaba said that ‘We’ll start a process to replace the chairperson and a decision will be communicated later.’
Given the financial crisis at SAA, Gigaba should have foreseen that the AGM would be delayed. An SAA AGM is only likely to be called after the annual report has been finalised which is unlikely to happen until the Directors can convince the auditors that the airline is a going concern.
Despite the objections by her close friend, President Zuma, SAA is a financial disaster largely because of the disastrous tenure of Myeni as a Director and the Board Chair.
Gigaba must for once honour a commitment made by the ANC to South Africans and fire Myeni with immediate effect. There will be no improvement at SAA until Myeni is removed.
Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 1 September 2017
Update:
It is time for Dudu to go
Media reports today that Chairperson of the South African Airways (SAA) Board, Dudu Myeni, will remain until her close friend “uBaba”, President Jacob Zuma, ends his term in 2019 is simply mind boggling.
I have written to Ms Myeni to request confirmation that these reports are true and if so, why she believes it is in the interest of the crumbling SAA for her to remain, despite commitments that her appointment would come to an end at the beginning of September.
It is clearly nonsensical for the Cabinet to once again capitulate to the wishes of a discredited President and to not instruct Malusi Gigaba, the Minister of Finance, to adhere to the commitment that was made that Ms Myeni would be appointed as SAA board chair for one year.
Ms Myeni must be fired with immediate effect to prevent her continued destruction of the little that is left of SAA.
SAA is bankrupt and near to liquidation. Suppliers have not been paid in full in July and August and the SAA cash flow indicates that they will also not be paid in full in September.
The airline has been running at losses of R350 million every month in the current financial year and if it can find benefactors to provided additional cash to pay its staff salaries and suppliers for the second six months of the 2017/18 financial year, is heading for a loss of R4 billion in the 2017/18 year.
Even if the banks were to miraculously extend their loans to SAA, this will not provide any cash and SAA will not be able to continue trading without a cash bail out from the South African taxpayer. It is certainly not a “going concern”.
There is R6,7 billion payable to banks by the 30th of September 2017. National Treasury has already been forced to pay Standard Chartered Bank R2,2 billion when they refused to extend the loans to SAA.
City Bank has apparently also refused to extend their loans to SAA beyond the 30th of September 2017 and today there are reports that Nedbank have informed SAA and National Treasury that they will not be able to extend the term of their loan beyond the 30th of September 2017 unless, possibly amongst other conditions, Ms Myeni is removed as SAA Board Chair and from the SAA Board.
It is clear that it is time for Ms Myeni to go. Keeping her on would be irresponsible and would essentially ensure SAA’s destruction.
Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 3 September 2017
