SAA: CitiBank decision underscores need for Myeni’s departure

12 January 2016

The 24 December decision by CitiBank to cancel SAA’s R250 million short-term credit facility has left the already cash-strapped airline in a very precarious position that could leave it insolvent by the end of the week. CitiBank has refused to renew the facility without further government guarantees, a decision that has left it essentially cashless.

This latest disaster, which follows the December announcement that SAA Chairperson, Dudu Myeni, is being investigated by the Hawks for corruption, further underscores the need for her to be removed as a matter of urgency.

It is during Myeni’s tenure that SAA has become the laughing stock of the aviation community, a far cry from its lofty heights of being one of the world’s leading airlines.

The current financial position may be been avoided if SAA managed to conclude an equity partnership agreement with Emirates, estimated to be worth more than R2bn, that would have given it a desperately needed cash injection. But the deal did not materialise, having been allegedly deliberately scuppered by Myeni under suspicious circumstances. 

The biggest question now is how Myeni can still be in her position given all the scandals and mismanagement at the airline.  An expert in the aviation industry, not a Zuma acolyte, must be employed to oversee the turnaround of the airline.  

Finance Minister, Pravin Gordhan, has shown tremendous leadership by ensuring that the Airbus swap agreement approved in July 2015 is completed. The Minister must continue to take a stand against Myeni and refuse to offer any more government guarantees until she has been replaced.

We cannot allow state-owned enterprises to by-run into the ground as a result of the President’s policy of appointing friends, cadres and political allies – without the requisite skills and experience – to senior management positions.

Statement issued by Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, 12 January 2016