Gigaba in Myeni pickle

Controversial SAA chair Dudu Myeni's term was extended despite the Treasury knowing her appeal against a compliance notice - issued against her a little less than a year ago - had been dismissed.

The notice, which speaks to her fitness as a director, was issued after the Companies and Intellectual Properties Commission investigated two complaints about her conduct. This was after Myeni had misrepresented an SAA board resolution on an aircraft deal.

Although the notice has no direct bearing on her tenure as a director, it is a reflection on her suitability to remain in the position and could be used in a court application to have her declared a delinquent director.

Last week pressure increased on Finance Minister Malusi Gigaba after the commission informed him that Myeni's contract extension was illegal. Late last year the commission found Myeni had contravened two sections of the Companies Act and had acted in a manner inconsistent with the duties of a director.

She corrected the misrepresentation after she was ordered to do so, but also appealed the finding. Her appeal was dismissed in June, but there has been no action from Gigaba's office.

Instead, Gigaba informed Myeni on September 1 that her term would be extended.

Gigaba's spokesman Mayihlome Tshwete said last week that the department was studying the notice and its implications.

"We will study the ruling and see what is the best way forward for SAA," he said.

Under Myeni SAA has performed dismally. Earlier this year two international lenders refused to extend the terms of maturing loans, leading to the Treasury bailing the airline out with more than R2-billion in emergency cash.

The Times understands that Gigaba, who had previously said Myeni would leave at the end of August, has been under incredible pressure from those lobbying for Myeni to be retained on the board. It is believed that several attempts by Gigaba to convince President Jacob Zuma to remove Myeni have failed.

The Treasury has previously said the decision to extend Myeni's term, to the airline's November 4 AGM, was to allow the full SAA board to account, although there is no legal requirement for this. Myeni could not be reached for comment.

On Wednesday Gigaba's decision was also questioned by MPs when SAA appeared before parliament's committee on finance. The committee gave Gigaba seven days to review his decision and provide documents that show the process followed to appoint Myeni.

Finance portfolio committee chairman Yunus Carrim said the commission notice had been raised by members on Wednesday "when they raised questions around her suitability to be retained in office".

"As a committee obviously we have to respect corporate governance norms and rules and if any board director of any SOE [state-owned enterprise] has violated them, clearly parliament cannot find that acceptable and, one imagines, the government too," he said.

The DA's Alf Lees said the compliance notice was serious.

"The issue is her ability to do the job and the mess she made. That's the reason she should not be reappointed.I have no doubt that her reappointment wasn't the decision of Minister Gigaba."

Lees also said the DA believed that "any board decisions taken since September 1 must be viewed as irregular and unenforceable".