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DA: Statement by Manie van Dyk, Democratic Alliance Shadow Minister of Public Enterprises, welcoming the appointment of a new CEO at SAA (25/02/2010)

25th February 2010

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The appointment of Siza Mzimela to the position of CEO of South African Airways (SAA) represents a step in the right direction in solving the management crisis at this particular State Owned Enterprise (SOE). Ms. Mzimela would do well to continue to the job of damage control done by former acting CEO Chris Smyth. We now hope that this will be the first of a string of appointments to parastatals currently without permanent leadership.

The appointment of Ms. Mzimela, who has vast experience in aviation, represents a welcome departure from the cadre deployment policy exercised by the ANC government, which in the past has resulted in the appointment of leadership to SOEs with no real experience and expertise in the sector that they have been placed in.

One needs only look at the current state that most enterprises are in to see just what inexperienced leadership has achieved. For example, the former CEO of SAA, Khaya Ngqula, who had no experience in aviation, led SAA to a loss of R16.6-billion in six years and state bailouts totalling R16.8-billion.

The Minister of Public Enterprises now needs to act to fill vacant management posts at power utility Eskom and freight logistics group Transnet. These posts need to be filled with experts in their respective fields, not politicians.

Ms. Mzimela now needs to continue leading SAA towards fiscal health and proper management which for the first time in seven years made a profit last year. She must also closely investigate the privatisation of SAA subsidiaries; such a move would foster competition in South Africa's aviation industry and result in the improvement of service delivery to consumers. It would also bring down the price of air tickets. The issue of air safety must also receive close attention. SAA is currently encumbered by technical skills shortages - again, this issue must receive urgent attention.

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