EFF STATEMENT ON THE SOUTH AFRICAN AIRWAYS (SAA) CRISIS

3 September 2015

On the 2nd of September 2015, the Board and Senior Management of the South African Airways (SAA) appeared for the first time before the Parliamentary Standing Committee on Finance to present what was misnamed a Turnaround Strategy.

From what the Board Members and Management say, it is very clear that there is a deeper crisis in SAA, which cannot and will not be resolved by the current leadership, inclusive of the Board Chairperson and Acting CEO. The Board repeatedly said that they are not aware of the so many anomalies happening inside the SAA, yet have approved a Turnaround Strategy which amongst other things will lead to retrenchment of workers in SAA.

The SAA leadership is engaged in many counter developmental activities which undermine this country. For instance, SAA Management has awarded a Contract of R85 million to a German Company to provide food in all the Lounges of the O.R Tambo International Airport, despite the fact that one of SAA subsidiaries, Airchefs or even local companies and co-operatives have the capacity to provide food in the Lounges.

Also the Airchefs subsidiary continues to provide imported food items from Denmark and Australia, whilst those food items can be sourced in South Africa, therefore creating local jobs. All public institutions and entities carry the obligation to procure locally produced goods and services, because such will create jobs. It however looks like there is no adequate leadership provided on this front.

SAA continues to operate on massive losses despite the fact that their competitors, who use the same kinds and types of planes and jet fuel make massive profits. The transfer of SAA from the Department of Public Enterprises to National Treasury does not seem to have added any value because the crises and challenges SAA experienced under DPE are still vividly present even when SAA is under National Treasury.

Furthermore, SAA has admitted to its own leadership instability due to vacancies in almost all senior positions, such as Chief Executive Officer and Chief Financial Officer. Overall, the whole leadership of SAA is directionless and will further degenerate the Airlines into deeper crisis.

The EFF calls on Ministers of Finance and Public Enterprise to promptly dissolve the SAA Board, and replace all the Board members with capable individuals. The capable individuals should then expedite the process of appointing capable Senior Managers and Executives who will manage the Airline with efficiency and patriotism. On the current path and under the current leadership, SAA is not going anywhere.

We also call on the current board to promptly halt intentions to retrench workers as part of its cost recovery mechanisms. We also caution the SAA against the reported intentions to sell SAA Cargo to Bidvest, which is a company partly owned by or of benefactor of Mr. Cyril Ramaphosa.

The EFF is aware that the ANC under Mr. Zuma is incapable of running State Owned Enterprises with the necessary efficiency and managerial dexterity due to, amongst others, nepotistic appointments. We however will not keep quite when the Zuma administration is destroying an Airline, which is supposed to play a significant and meaningful role in the country, continent and the world.

We will write a substantial letter to the Ministers of Finance and Public Enterprise to persuade them and cabinet to dissolve the SAA Board, and rationalize the leadership of the SAA.

Statement issued Lehlohonolo Fana Mokoena, EFF acting national spokesperson, 3 September 2015