SAA's Kalawe says he expected 'sabotage'

SAA's Chief Executive Monwabisi Kalawe says that he expected some board members to sabotage his efforts to turn the airline around. Image: Positions and Promotions

"I expected these things when I took the job, I expected to have these problems," he said. "But I have a very professional, disciplined and committed board behind me. They are highly ethical and they are committed to the business."

Kalawe was appointed to the job during a leadership and financial crisis at the airline. He was tasked with implementing a turnaround strategy for the loss-making and severely under-capitalised, state-owned carrier - while still negotiating the notoriously tricky political landscape facing the group, which has already claimed numerous executive reputations.

It emerged this week that acting chairman Dudu Myeni has asked the Auditor-General to investigate Kalawe over at least four serious allegations. These range from negotiating to buy a stake in the insolvent Senegal Airline without the board's knowledge, defrauding customers by charging them for a baggage-wrapping service they did not receive, fuel procurement irregularities and his apparent refusal to sign a performance agreement.

The airline was rocked last year after the suspension of then-acting Chief Executive Vuyisile Kona, who was later axed. He, too, was a respected executive also tasked with turning the business around. Kona had been appointed as SAA's Chairman in 2012 after Cheryl Carolus and much of her board resigned in protest at Public Enterprises Minister Malusi Gigaba's delay in tabling the airline's financial statements. This triggered the sudden departure of then Chief Executive Siza Mzimela.

Sympathy from previous CEOs

Dudu Myeni, SAA Chairman wants the Auditor-General to investigate affairs at SAA. Image: Mhlathuze Water

Kona may well sympathise with Kalawe, as he was also suspended after a list of alleged serious breaches of corporate governance were reported to Gigaba by the board.

In his application to the North Gauteng High Court to have his suspension by Gigaba reviewed, Kona painted an alarming picture of interference by the board in the day-to-day affairs of the airline.

Myeni featured prominently in the legal papers he lodged with the court. She and another non-executive board member, Lindi Nkosi-Thomas, were alleged to have acted in concert as "enemies" of Kona's on the board.

The two board members were said to have "poisoned" Gigaba against Kona's efforts to devise a turnaround plan for the company.

Myeni went as far as writing to Kona to ask him not to appoint people in order to comply with a hiring moratorium. Kona nonetheless hired at least four specialist consultants to probe all of SAA's divisions in his efforts to collect information for a turnaround plan. He deemed the consultants necessary as he claimed he was being stonewalled by staff. The hirings were among the charges used to get rid of him.

Kalawe has now offered patient explanations for all the charges levelled against him.

"The Department of Public Enterprises is aware of these issues and the organisation (SAA) has their support. I have no fears that she (Ms Myeni) is going to do to me what she has done to people in the past. I am clean, I have not done anything wrong," he said.

Gigaba won't comment directly

Public Enterprise Minister Malusi Gigaba has refused to comment on the dispute playing out at SAA. Image: GCIS

Gigaba's spokesman, Mayihlome Tshwete, said that he would not comment directly on the substance of the allegations.

"We are concerned that there are people at SAA, at board level that don't have an appreciation for the situation that SAA is currently in," Tshwete said.

"We had hoped everyone's attention would be on ensuring the CEO is given the necessary support he needs to do his work," he added.

Commenting on Myeni approaching the Auditor-General's office to investigate the claims made against him, Kalawe said: "If any legitimate government structure wants to investigate me I am happy for that to be done - but it would have to be done through the board and the terms of reference would have to be specific."

Explaining one of the more bizarre claims - that he had tried to buy a bankrupt airline without the board's knowledge - Kalawe said SAA and the department had both done due diligence investigations on Senegal Airlines after being approached by that country.

These had found that the airline's financial circumstances were too dire for SAA to consider investing in it. The board was informed of that, and the airline's attention shifted to Ghana - where the carrier is still looking for a suitable opportunity that would allow it to set up a hub in West Africa - one of the strategic objectives under the board-approved turnaround plan.

On the fuel contract, he said the negotiations over a new supply for the year had taken longer than usual and the board had approved the appointment of suppliers by means of a round-robin resolution.

Kalawe's performance agreement will only be presented to him on 29 May once it has been approved by the airline's board and specifically the remuneration committee.

Source: Business Day via I-Net Bridge