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Cape Town – Finance Minister Malusi Gigaba must review the reappointment of SAA chairperson Dudu Myeni, parliament’s standing committee of finance resolved on Wednesday.
The committee voted in agreement with the resolution on Wednesday evening.
Myeni was supposed to complete her third term as chairperson at the end of August, but Treasury said she can only be replaced at the airline’s AGM, which can only occur in November due to a delay in the publishing of its annual financial results.
ANC MP Derek Hanekom said clarity was required, as Myeni had reportedly stated that she would only go when “ubaba” – a reference to her friend President Jacob Zuma – left office.
READ:
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The committee tasked parliament’s legal adviser, advocate Frank Jenkins, to explain why a review was required.
In his official advice, Jenkins said Myeni will not be able to stand for a fourth term, according to SAA’s memorandum of incorporation.
What needed clarity was whether Treasury extended her appointment or if it reappointed her to the position. He said Treasury should clarify whether it notified the Companies and Intellectual Property Commission (Cipro), as “section 70(6) of the Companies Act requires a company file a notice within 10 days after a person becomes or ceases to be a director of the company” with Cipro.
Based on his legal advice, the committee requested that Gigaba review the reappointment of Myeni and to respond within seven days.
"The committee, after deliberations on the available evidence, is concerned about the legality of the extension of the term of office of the chairperson of the board of SAA," the resolution stated. "The committee therefore believes that the decision to extend the term of office of the chairperson must be reviewed."
The committee resolved that Gigaba should provide documentary evidence of Myeni’s reappointment and the notice to Cipro.
"The committee requests that the minister provide it with all documentary evidence relating to the extension of her term of office or her reappointment, including compliance with the provisions of the Companies Act and specifically the notice to the Companies and Intellectual Property Commission, provided such notice was given," the resolution states.
"The committee strongly recommended
that the annual general meeting be held before the end of this calendar
year," the resolution says.
Earlier, Gigaba pledged to add new board members in November that had aviation skills, after DA MP Alf Lees raised issues of inadequate skills on the ailing airline’s board.
ALSO READ: Myeni’s successor up to Cabinet – Ramaphosa
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