Cape Town – Cabinet is confident that Finance Minister Malusi Gigaba is on track in government’s bid to turn South African Airways (SAA) around and improve its governance issues, new Communications Minister Mmamoloko Kubayi said on Thursday.
“Cabinet is confident with the work being done,” she told media. “The is because of the CEO appointment and the board process.”
She added that incoming SAA CEO Vuyani Jarana is set to begin on November 1, emphasising that the board changes have not changed his starting date.
Kubayi also said Cabinet does not believe SAA should be privatised. “Cabinet is not looking at privatising SAA,” she said.
“We are confident that things will turn around,” she said. “You need stability in terms of the board and executive. Now, you have someone with aviation expertise, which is why Cabinet has confidence.”
That expertise comes in the form of new board member Ahmed Bassa, who works as a director at Aerodromes and Contrails.
Asked if they looked at outgoing SAA chairperson Dudu Myeni’s poor track record, Kubayi said Cabinet “looked at the issues, not the people”.
“Gigaba is on track with his work he is doing at SAA,” she said. “We should cut our losses with SAA, which is why we are working to turn it around. How we do we ensure SAA is back on track and functions effectively? Issues around governance needed to be looked at.”
The new board
Gigaba officially announced on Thursday that Cabinet has approved the appointment of six new board members for SAA, including a new chairperson to replace Myeni.
Myeni is replaced by Johannes Bhekumuzi Magwaza as the new chairperson, while Nolitha Fakude is the new deputy chairperson and non-executive director, replacing Tryphosa Ramano.
New board members who will serve as non-executive directors are Geoff Rothschild, Bassa, Tinyiko Mhlari, and Martin Kingston.
Current non-executive directors who will continue to serve on the board are Bajabulile Swazi Tshabalala, Peter Tshisevhe, Thandeka Nozipho Mogoduso, Peter Holmes Maluleka, and Akhter Hoosen Moosa.
The other board members being replaced are Mzimkulu Malunga, Siphile Buthelezi, Nazmeera Moola and Gugu Sepamla.
The changes will be effective from November 3 2017, when Gigaba is set to have a special meeting with the new board.
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