Talks could end SAA's court battle with CEO

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Over the past six years four CEOs and one acting CEO have left the airline.

Judgment on Kalawe's application before an independent arbitrator, Nazeer Cassim SC, to have his disciplinary hearing halted and his suspension lifted, was reserved on Friday. It was due to be handed down yesterday, according to the source.

Kalawe had initially filed the application at the Labour Court but withdrew it, opting for it to be heard before Cassim.

SAA spokesman Tlali Tlali said on Wednesday, 22 April, the airline had no "new substantive comment" to make on the disciplinary inquiry or talks on a settlement.

"The matters previously communicated by the company about Kalawe remain matters of due process about which we would like to exercise restraint until they have been finalised," said Tlali.

In his founding affidavit, Kalawe said SAA had made the focus of the disciplinary hearing the false overseas bank statements he had procured to dig up dirt on board chairwoman Dudu Myeni.

However, Kalawe said that he had procured the documents in the best interests of SAA, and he did not expect them to be made public by private investigator Paul O'Sullivan.

In responding papers filed before the Labour Court, SAA accused Kalawe of appointing a former colleague as an executive assistant at nearly triple the salary of the previous incumbent.

It also revealed that Kalawe had asked security staff to instal spyware in his office, on his suit jacket and on a keyring, which was intended to protect him from a potential sexual harassment case.

SAA has also disclosed that Kalawe appointed consulting firm McKinsey at a cost of R80m while other consulting firms were offering lower fees for their services.

The disciplinary inquiry, which was scheduled to resume last week, will not continue should the two sides reach a settlement.

It is not known whether Kalawe would be paid a settlement.

SAA has in the past paid departing CEOs handsomely - notably Coleman Andrews, who received R232m in 2001.

Andre Viljoen received about R7m and Khaya Ngqula was paid R8.9m. Vuyisile Kona, who was in the position of CEO for four months, received about R1.5m and challenged the airline for a further R3m that he claimed to have been promised.

Source: Business Day