SOE Governance: DA welcomes SAA action against Ngqula

The decision by the South African Airways (SAA) board to institute action against its former CEO Khaya Ngqula to recover monies wasted during his tenure, including R27 million on unauthorized bonuses for executives is commendable. This represents a welcome departure from the general lack of responsibility that has come to define the other heads of state-owned entities (SOEs) responsible for financial mismanagement. We trust that the boards of other SOEs will take a leaf out of SAA's book and pursue former CEOs implicated in wasting public funds.

The decision to pursue Ngqula follows repeated calls by the DA for a thorough forensic investigation to be instituted at SAA following Ngqula's implication in tender rigging to the tune of R1-billion, and his subsequent dismissal in 2009. It is still a matter of astonishment that he was paid a R13-million settlement despite being under investigation for mismanagement, conflict of interest and procurement irregularities.

This example should become standard practice in South Africa, not an exception to the rule. As such, the DA calls on the respective boards of public entities concerned to pursue action against the following former CEOs:

• Former SABC CEO Dali Mpofu - Implicated in a 2009 Auditor-General's report for "lack of leadership oversight" and "contraventions of policy and/or alleged mismanagement of funds".

• Former Land Bank CEO, Alan Mukoki - Implicated for tender rigging of R2-billion

• Former Land Bank Acting CEO, Phil Mohlahlane - dismissed over AgriBEE fund corruption scandal, has since been re-appointed to a senior position in the Department of Agriculture.

• Former Ithala CEO, Sipho Shabalala who escaped lightly with a written warning for negligently awarding a R169-million tender without following due process.

The DA will write to these boards requesting that investigations similar to the one carried out by the SAA board be instituted. Perhaps then we can begin to speak of a real change in governance at our SOE's and other public entities.

Statement issued by Dr. Manie van Dyk, MP , Democratic Alliance shadow minister of public enterprises, July 20 2010

Click here to sign up to receive our free daily headline email newsletter