Public Enterprises Minister Lynne Brown said on Thursday, 20 November, that she had intervened in the impasse between chief executive of SAA Monwabisi Kalawe and the board of SAA‚ to ensure "a fair process" to resolve the matter.
SAA‚ which is in severe financial distress‚ has been torn apart by conflict among board members and between the board and management for more than two years.
In the latest drama‚ the board - headed by the politically connected Dudu Myeni - suspended Kalawe three weeks ago without providing reasons.
After Brown objected to the suspension asking for reasons‚ Myeni lied saying that Kalawe had been reinstated. This was untrue.
In a briefing at Parliament on Wednesday‚ Brown said: "At this stage the CEO is not in his job. We have started a process now to make sure that there is a fair process around the CEO. It is at a sensitive stage‚" she said.
Brown was referring to a meeting held in Durban earlier this week in which board members‚ Kalawe and her adviser Brendan Roberts tried to reach agreement on the way forward. A final agreement on this has not yet been accepted by all parties.
However‚ there appears to be tacit agreement for an investigation into Mr Kalawe in Ms Brown's statement.
Brown also made it clear that co-operation between the parties was the only way out of the impasse as she had no choice but to work with Myeni.
Earlier‚ Brown had made a veiled threat that she could fire Myeni if she acted in a way that continued to destabilise the airline.
"I have to work with the chairperson so whether we can work together (after this incident) is not a question for consideration‚" she said on Thursday.
Brown also spoke about the challenges facing SAA and the need for a new business and financial model.
"I want the appointment of a turnaround specialist to come in and help SAA to live off its balance sheet.
"The state does not have money to bail out SAA. We need a new business model and a new financial model. What we (decide) will determine whether we take a strategic equity partner. That remains an option‚" she said.
Thursday's cabinet statement also made mention of the SAA crisis‚ saying that it welcomed a meeting two weeks ago between the board‚ Brown and Finance Minister Nhlanhla Nene‚ which was expected "to yield tangible results at the national carrier and put it back on a path towards profitability and good governance".
Source: BDpro
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