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Johannesburg - The investigation into irregularities at South African Airways (SAA) will continue despite the dismissal of its chief executive Khaya Ngqula.
SAA announced on Tuesday that Ngqula's "employment with SAA has terminated".
SAA spokesperson Robyn Chalmers told Fin24.com on Tuesday that the board's investigation into the "allegations surrounding the airline is under way and will continue".
Auditing firm KPMG's forensic unit is conducting an investigation into Ngqula's alleged mismanagement and conflict of interest.
Ngqula was placed on "special leave" last month pending an investigation into allegations that his wife, Mbali Gasa, benefited from a R3.5bn inflight catering contract awarded to the Servair consortium. She is a shareholder of the group.
The South African Trade and Allied Workers' Union (Satawu) handed documentation detailing the alleged misconduct to the public enterprises ministry early this year, forcing it to act.
The investigation has also been tasked to look into the issue of retention premiums allegedly paid to Ngqula and some members of SAA executive committee (exco).
Satawu released information last year about monthly "retention premiums" of R70 000 paid to Ngqula and exco members, even while the airline was urging other employees to "make sacrifices" and forfeit wage increases and other benefits. SAA has also retrenched more than 2 000 of its staff, to "rightsize" the business.
Since taking over the chief pilot's seat at SAA four years ago, Ngqula has been involved in a number of controversies.
He took to the habit of flying to meetings in a hired helicopter soon after taking over. Soon after SAA reported an R8bn loss for the 2005 financial year, Ngqula was spotted flying in a helicopter (at SAA's expense) to a meeting in Midrand (south of Pretoria) from SAA's headquarters east of Johannesburg.
Other accusations of Ngqula's excesses included chartering an aeroplane for a 30-minute flight between London and Paris. He also allegedly employed a bodyguard and chauffeur.
Ngqula was brought in to fix the ailing airline and prepare it to return to profitability, something SAA has yet to accomplish.
The "deep restructuring" SAA embarked on from March 2007 only delivered a R123m profit in the year to March 2008. The figure excluded "restructuring costs" which resulted in a net loss of R1.1bn. In the year to March 2007 SAA reported a net R883m loss.
Results for the year to 2009 are not expected to be better either.
"The bottom line will be a loss, unfortunately," acting CE Chris Smyth told the parliament's public enterprises committee in February. He blamed it on the "economic downturn that hit us in the last quarter of last year".
-Fin24.com