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OUTA turns to court to declare SAA's Dudu Myeni 'delinquent'

Mar 08 2017 11:03
Lameez Omarjee

Johannesburg – A court application seeking to declare South African Airways (SAA) chairperson Dudu Myeni a “delinquent director” has been filed by the Organisation Undoing Tax Abuse (OUTA) and the South African Airways Pilots Association (SAAPA).

The court application was filed at the North Gauteng High Court on March 7 2017, said OUTA portfolio director for transport Ben Theron at a press briefing at the Gordon Institute of Business Science on Wednesday. If the order is granted, Myeni will not be allowed to be appointed as a director or executive of any organisation in South Africa for seven years.

The airline had suffered a loss of R10.5bn over a period of five years, following Myeni’s appointment in 2012, said Theron. “The situation at SAA has worsened at the hands of Myeni,” he added.

Among the reasons OUTA and SAAPA listed for Myeni being unfit to lead is the appointment of BnP Capital Services as a transactional adviser, despite this being unnecessary, he explained.

READ: Outa unveils shocking facts about SAA contractor

Last year the civil rights body took SAA on over the appointment of BnP Capital because it did not follow the correct procurement procedures. OUTA sought to stop the conclusion of the agreement, which would see BnP Capital shareholders earning R256m.

“The appointment was flawed from the outset. The board failed to do due diligence on the company, which had its FSB [Financial Services Board] licence removed.”

The contract was terminated only after OUTA brought the irregularities to light, said Theron.

Following the cancellation of the contract, Myeni also supported the payment of R49.9m to BnP Capital.

Theron added that Myeni opposed a partnership between SAA and Emirates which would have seen SAA gain R2bn. He also listed the delays in the Airbus swap deal as some of the failures under Myeni's watch. 

A report by EY in 2015 identified irregularities in procurement and contract management in which no action was taken, said Theron.

These failures occurred either at her own hands or under her watch, said Theron.

Pilot and chairperson of SAAPA Jimmy Conroy echoed these views. “SAA is in distress as a result of dysfunctional leadership,” he said.

He added that the survival of carrier is in question, as a result of the “accumulation” of poor governance and political interference.

Conroy said the association believes the case has merit.

Read Fin24's top stories trending on Twitter:

saapa  |  saa  |  outa  |  dudu myeni  |  state-owned enterprises


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