Report on SAA's Ngqula out soon

Johannesburg - State-owned airline South African Airways (SAA) said a forensic investigation into alleged bad governance practices by its former CEO Khaya Ngqula, and other officials, has been completed.

According to SAA chairperson Cheryl Carolus the findings will be made public in March.

The investigation, conducted by auditing group KPMG, was ordered after the airline suspended Ngqula, following allegations of abuse of SAA's procurement system and bad governance. The South African Transport and Allied Workers Union had earlier compiled a dossier on Ngqula, alleging among other things he had unfairly awarded a R3.5bn catering contract to a company in which the former CEO's wife held shares.

"We have briefed all the people mentioned in the report," Carolus said on Wednesday. "We are now taking legal advice on the findings and we will decide the way forward after that."

She would not be drawn on whether there were any specific findings against Ngqula, nor whether criminal charges will be laid against any person mentioned in the report.

"I can promise you that governance violations will be dealt with," said Carolus. "For sure there were people who stepped over the boundaries."

She added the report pointed out "glaring governance issues that need to be fixed urgently".

"Some of them go back to the sixties. You see, this airline has been unbundled from Transnet, went to the department of transport and now public enterprises without any of those issues being attended to. This report gives us an opportunity to fix them," said Carolus, adding some issues raised gave her sleepless nights.

- Fin24.com