SAA: Myeni’s blatant compromise of finances further confirms her disregard for the taxpayer
25 January 2016
Today’s Die Burger reports have revealed internal memoranda detailing SAA Chairperson, Dudu Myeni’s recommended new destination routes to Treasury despite knowing that these routes would be entirely unprofitable routes the would result in a yearly loss of R256 million. This unilateral decision-making is symptomatic of a chronic malfeasance and maladministration at SAA, under Myeni’s stewardship. Minister of Finance, Pravin Gordhan in conjunction with Minister of Public Enterprises, Lynne Brown, need to investigate.
It is high time that we see the suspension of Myeni and the privatisation of the national carrier after years of lurching from crisis to crisis. I will therefore write to Minister Brown and Minister Gordhan such that both Ministers can consider all the evidence before them, clearly showing Myeni’s brazen disregard of the financial and operational health of SAA since the commencement of her tenure as chairperson.
In doing so I will request that Myeni be suspended pending the outcome of such an inquiry and Minister Brown urgently consider- in consultation with the Minister of Finance- conducting a feasibility study for SAA’s privatization to be presented in Parliament.
The reports revealed that Myeni has been trying to set up SAA routes from Cape Town to Port Elizabeth and Cape Town to Durban, which would have resulted in a further loss of R256 million per year - if former Finance Minister, Nhlanhla Nene had not rejected this preposterous idea. Currently these routes are operated by SAA Express and other airlines. In this, she ignored SAA management and executives who did not support this proposal. This reportedly emanates from her friends and MPs “disgruntlement” with having to fly SAA Express or Airlink, which do not offer business class seats.