SAA probes Ngqula

Johannesburg - State-owned airline company South African Airways (SAA) said on Friday it would probe its chief executive following a number of allegations, including that he awarded an in-flight catering contract to a company in which his wife was a shareholder.

"The board (of directors) viewed the allegations in a serious light, and has agreed to establish a committee of non-executive directors," said SAA in a statement on Friday afternoon.

SAA said the board made the decision in light of the documentation forwarded by trade union South African Trade and Allied Workers' Union to the Public Enterprises Ministry on Khaya Ngqula's alleged misconduct.

Apart from the alleged conflict of interest with the catering contract, the investigation will also look into the issue of retention premiums allegedly paid to Ngqula and some members of SAA executive committee.

"Their (the committee's) mandate is to immediately engage an independent, external agency to conduct an in-depth investigation," said SAA.

Mbali Gasa (Ngqula's wife) is a shareholder of the Servair consortium, which has allegedly won the R3.5bn catering contract. The SAA has stated that the contract has not been finalised, although the consortium won the "preferred bidder" status.

According to the Sunday Times newspaper Vusi Sithole and Gasa are co-shareholders of Servair. Sithole is also allegedly a business partner of Ngqula's.

SAA spokesperson Robyn Chalmers confirmed to Fin24.com that Ngqula has not been suspended pending the outcome of the investigation.

"Absolutely not. That's a decision taken by the board," said Chalmers.

SAA says Ngqula and members of the executive committee have offered to co-operate with the probe.

- Fin24.com