Rumours rule as SAA silent on CEO's suspension

Rumours dominate as the reasons for the suspension of SA Airway's acting CEO are kept under wraps.

The board of the national carrier announced late on Monday that it had suspended Vuyisile Kona "based on certain allegations that have come to the attention of the board, in respect of which the board has a fiduciary duty to investigate".

Department of Public Enterprises spokesman Mayihlome Tshwete would not give reasons for the suspension.

The Department of Public Enterprises is SAA's only shareholder.

Asked whether Kona's reportedly cosy relationship with the National Transport Movement - a union pressing for recognition at SAA - played a part, Tshwete said that the board's decision was not based on only "one thing".

The SA Transport and Allied Workers' Union, the dominant union at SAA, applauded the board's decision.

"We have exhausted all avenues in an attempt to cooperate with Kona," the trade union said yesterday.

The union's chairman, Zenzo Mahlangu, said that Kona had a "soft spot" for its rivals .

Kona and the SAA chairman disagreed last month about a document the acting CEO signed that was taken as giving a form of recognition to the National Transport Movement.

Craig Nte, spokesman for the National Transport Movement, denied that there was a special relationship between the union and Kona.

"If he was close to us, he would have officially recognised us," said Nte.

The union is in a membership verification process with SAA's human resources department. The results will be known in two days, according to Nte.

Kona was appointed chairman at the national carrier last year after a walkout by half the board because of conflict with the Department of Public Enterprises about SAA's recapitalisation.

After the resignation of then CEO Siza Mzimela, Kona assumed the role of acting CEO. He later resigned as chairman "in the interest of good corporate governance".

The airline has, since last year, received a R5-billion guarantee from the government to help it recapitalise after a year of losses.

Over the festive season SAA used a loan facility of about R400-million for running costs.

It was reported that it accessed another chunk to finance its running expenses in recent weeks.