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Forensic audit to be done on SAA

Johannesburg - KPMG's forensic unit will begin an audit of allegations levelled at airliner SA Airways after its CEO was placed on special leave last week, SAA's board of directors said on Tuesday.

They will look into the issue of retention premiums (payments above a salary), alleged issues of a conflict of interest and issues of procurement.

"The Board has indicated that it views the allegations in a serious light, and that the investigation will be concluded as a matter of urgency while at the same time ensuring that it is thorough."

The announcement was made on the same day that the airline was dealing with the second arrest in a month in London of its crew after drugs were allegedly found in their luggage.

Last Wednesday, SAA announced that CEO Khaya Ngqula had been placed on special leave, with the board appointing an independent investigation into allegations levelled against him.

Chris Smyth was appointed acting CEO.

A recent media report alleged that Ngqula's wife, Mbali Gasa, was part of a group that had secured a large catering deal with SAA, but SAA said that this deal had not gone through yet.

KPMG would start its work on behalf of the board immediately.

SAA was allocated R1.6bn in Finance Minister Trevor Manuel's latest budget speech to help the airline restructure after a loss-making period.

- Sapa

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