The Federation of Unions of South Africa (FEDUSA) welcomes the decision by Companies Tribunal to investigate the suitability of the South African Airways (SAA) Chairperson Dudu Myeni especially whether she acted in a delinquent manner in her capacity as director of SAA Board said Dennis George FEDUSA General Secretary.

The Tribunal is a newly established body under the Companies Act and its functions include reviewing the administrative decisions and compliance notices of companies.

The Companies and Intellectual Property Commission, the applicant in the case, has told the Tribunal that in 2013, Myeni lied twice to former Public Enterprises Minister Malusi Gigaba about the Airbus deal, telling him that the SAA Board had agreed to lease only two new aircraft from Airbus when in reality it was leasing 10 of them. In her defence Myeni claimed that this was a mistake and the case should be thrown out of court.

Ethical leadership in SAA is critically needed to turn the ailing national carrier around to sustainability and profitability, as South Africans and the weak economy can no longer afford to continuously bailout SAA. The airline has suffered losses of more than R10.5bn over the past 5-years and the situation has deteriorated under the leadership of Myeni.

It has been reported in the Mail and Guardian newspaper of 15 June 2017 that Myeni has missed six Board meetings since it was appointed by former Finance Minister Pravin Gordhan.

The South African Airways Pilots Association (SAAPA), a FEDUSA affiliate in the air transport industry, and the Organisation Undoing Tax Abuse (OUTA) filed an application at the North Gauteng High Court in March 2017 to have Myeni declared a delinquent director. The lack of good governance and ethical leadership were identified, as essential reforms to be implemented to restore the credibility of state-owned companies, which is linked to the requirements of rating agencies.

In January FEDUSA also filed a Section 77 Protest Action application with NEDLAC (the National Economic Development and Labour Council) focusing on the extensive lack of ethical and competent leadership at the helm of state owned enterprises and the urgent need to strengthen the current whistle blower legislation.

NEDLAC’s Standing Committee on Section 77 Notices will hear FEDUSA’s application tomorrow morning in Johannesburg. Last night the Tribunal reserved its judgement on the Myeni case.

 

Issued by FEDUSA