SAA turbulence alert

The suspension of South African Airways acting CEO Vuyisile Kona this week is concerning, parliament's portfolio committee on public enterprises said yesterday.

"Over the past few months, the national airline has experienced resignations from board members and top executives," committee chairman Peter Maluleka said.

A number of SAA board members, including chairman Cheryl Carolus, unexpectedly quit last year before the annual general meeting in October, when their term was due to end and on Monday the SAA board announced it had placed Kona on precautionary suspension.

The board said the move was based on allegations which it had a fiduciary duty to investigate.

Maluleka said the committee was not surprised by the latest developments.

The committee went on an oversight visit to SAA in November and it was not satisfied with the outcome of the discussions.

However, governance problems at SAA had affected the execution of its turnaround strategy.

SAA was invited to brief the committee on the annual report and financial statements on February 19, Maluleka said.

Kona was quoted in Business Day yesterday as saying he would not resign.

"[The SAA board] must prove whatever they are saying."

Kona said he had the option to leave SAA in December or January, but had decided against it for the sake of stability and credibility at the airline.

In response to the report, SAA spokesman Tlali Tlali said the decision to suspend Kona had been taken so that an investigation could be conducted.

He said questions about Kona's resignation should be put to him.

"The substance of the allegations amounts to contraventions of the Public Finance Management Act in relation to the procurement of certain service providers," Tlali said.

Last month, the national carrier received a R550-million bank "facility" to cover fuel and other short-term commitments, the Sunday Times reported.

During the annual general meeting in October, SAA reported a R1.3-billion operating loss for the year. The airline's losses over the past decade amount to R14.70-billion.