Johannesburg - South African Airways (SAA) paid former chief executive Khaya Ngqula R13.9m, according to figures in the SAA annual report leaked to the media on Tuesday.
Part of Ngqula's package was R756 000, which had been paid as a retention bonus. This has apparently not been repaid.
Earlier in the year he departed SAA under a cloud. Allegations of mismanagement in the awarding of SAA contracts in which he and his wife were seemingly involved are being investigated.
SAA's Air Chefs catering contract is one of the matters still under scrutiny.
The SAA annual report must be presented to Parliament before it is made public. This is scheduled for Wednesday.
On Tuesday SAA's shareholder, the Department of Public Enterprises, declined to comment on Ngqula's package.
"The annual report is not a public document yet. Until then we cannot comment," the department explained.
Earlier this year the department said that Ngqula would have to return any money he had received as a retention bonus.
Chris Smyth, SAA's acting chief executive, also declined to comment on Ngqula's package. But he did say that SAA had much to thank Ngqula for.
"It was his vision that shifted SAA's focus to Africa. This probably saved SAA, and it will remain our focus for the future. It was also at his insistence that SAA began restructuring in 2007."
This restructuring saved SAA R2.5bn and largely contributed to the profit in the past financial year.
In that financial year the airline has shown a profit - R398m - for the first time in seven years.
Smyth has been the acting chief executive of SAA since February 13. "These are therefore not my results; they are those of Khaya and his team," he insists.
"All that I can say is that he deserves credit. The management team that he appointed was responsible for the turnaround."
But DA MP Manie van Dyk does not agree.
"SAA has suffered losses for the past four years under Ngqula. Should this man now suddenly receive praise? It's as good as saying that someone who murders 10 people and then prevents another one from falling off the roof is suddenly a saint."
"Ngqula's restructuring also cost 2 000 people their jobs."
Van Dyk says he does not believe SAA has turned the corner.
"If SAA has done so well, why did it again ask the government for - and receive - R1.5bn in February? Only when SAA is independent of the taxpayer and government help, and when it can fund its own operations and capital expansion from its own profits, will one be able to acknowledge that SAA has turned around."
On Tuesday Smyth said that retention bonuses were still being paid by SAA.
"Over a period of three years a total of R60m has been paid to 127 managers."
He explains that it was essential to keep skills within SAA, but that the paying of bonuses will cease this year.
Furthermore, SAA's top management received an increase of 9% in the financial year while employees received 10%.
- Sake24.com
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