ANCWL demands SAA to only do business with 50% black- and female-owned suppliers

12 January 2017 - 15:10 By Karl Gernetzky
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The ANC Women’s League (ANCWL) on Thursday called for an investigation into alleged internal and external forces at South African Airways (SAA) that are allegedly seeking to derail transformation at the airline. 

This Boeing 737 operated by SAA made aviation history this week as the first commercial flight in Africa to use jet fuel derived from plant material. SAA and Mango used the biofuel, made from a type of tobacco called Solaris, on flights between Johannesburg and Cape Town on Friday. The plants are being grown in Limpopo by Sunchem SA.
This Boeing 737 operated by SAA made aviation history this week as the first commercial flight in Africa to use jet fuel derived from plant material. SAA and Mango used the biofuel, made from a type of tobacco called Solaris, on flights between Johannesburg and Cape Town on Friday. The plants are being grown in Limpopo by Sunchem SA.
Image: MOELETSI MABE

The league had noted an alarming number of reports that suggested forces were fighting transformation in terms of employment equity and procurement‚ with an aim of ensuring only white men occupy senior positions and white suppliers remain the major beneficiaries of tenders‚ ANCWL secretary-general Meokgo Matuba said in a statement. 

The league will push either for a judicial commission of inquiry or a parliamentary inquiry into the airline‚ and will meanwhile push for the airline to do business only with suppliers that are more than 50% black- and female-owned.

The reports included the appointment of the US-based Bain Capital to advise on a possible merger‚ continued lack of transformation among staff and pilots‚ and that black suppliers make up only 2% of the annual R24bn procurement spend‚ the league said. 

“The state-owned companies (SoC's) must be the champions of radical economic transformation and employment equity. ANCWL will persuade (the) ANC-led government to compel all SOCs‚ through legislation‚ to do business only with suppliers having more than 50% black women ownership‚” Matuba said. Management and procurement at SAA has been under scrutiny for the past few years‚ amid management instability and multibillion-rand bailouts and guarantees from the Treasury.

A newly appointed SAA board is expected to present a new turnaround strategy to Parliament in February. SAA‚ along with other state airlines Mango and SAExpress‚ are also facing possible rationalisation‚ with the Treasury and Department of Public Enterprises considering whether a new holding company should be created or if the airlines could be merged.

Bain and Capital‚ in conjunction with SA-based Abacus Advisory‚ were appointed in October to advise on the airlines corporate structure.

– TMG Digital/BusinessLIVE

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