in Business & Finance

South African opposition takes Myeni's appointment to court

Posted 13 September 2016 · Add Comment

South Africa's largest opposition party, the Democratic Alliance said it is taking legal action against the South African government following its controversial decision to reappoint Duduzile Myeni as the chairwoman of South African Airways, reports ch-aviation.

President Jacob Zuma's cabinet ratified SAA's new board of directors putting to bed months of speculation about Myeni's future at the loss-making national carrier. The resolution of SAA's perennial leadership woes was one of the preconditions Finance Minster Pravin Gordhan had demanded SAA meet before it could access a ZAR5 billion (USD351 million) state-backed guarantee needed to finalize its 2015/16 accounts and retain its status as a going concern. 

However, the leader of the DA, Mmusi Maimane, on Monday said that in his party's opinion there was enough prima facie evidence to build a case against Myeni's reappointment given the parastatal's poor financial performance and the persistent scandals it has endured during her four-year tenure.

"Her reappointment not only reeks of nepotism and cronyism so common under the Zuma administration, but it also flies in the face of the need for good governance at State-Owned Enterprises (SOEs), especially SAA, which is in financial ruins - failing to make a profit for several years - and a whisker away from being liquidated," he said. "Our legal action thus seeks to have the reappointment of Ms Myeni set aside as being wholly irrational. We contend that Ms Myeni is an unfit and inappropriate appointment as she is incapable of steering the national carrier in the right direction."

The DA alleges that under Myeni, SAA has sustained growing losses while failing to adhere to the Public Finance Management Act which requires SOEs to table finalized accounts within a specified timeframe. It also alleges that several operational decisions were taken on political, as opposed to commercial, grounds.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Boeing and Springfountain plan West African aircraft leasing, MRO centre

Nigerian aviation services provider Springfountain Infrastructure Limited and US aircraft manufacturer Boeing Company have signed a joint venture agreement to set up Africa's first aircraft leasing company that will also offer

Liebherr-Aerospace supplies further components for the Embraer E-Jets E2

Brazilian landing gear manufacturer ELEB has awarded Liebherr-Aerospace with a built-to-print contract regarding the leg strut and trailing arm for the main landing gear of the Embraer E175-E2.

MTU Maintenance and Air Burkina sign CF34-8E engine maintenance contract

MTU Maintenance and their new customer Air Burkina have signed an exclusive three-year maintenance agreement.

Syphax Airlines gains reorganisation plan approval

Syphax Airlines is on track for its planned 4Q17 relaunch after the Court of Sfax approved airline's reorganisation plan, reports ch-aviation.

IATA: Moving NewGen ISS forward

The International Air Transport Association (IATA) has announced key milestones toward implementing the New Generation of IATA Settlement Systems (NewGen ISS).

A320 pilot training breakthrough

Pilots and students can now access on line professional training videos covering over 60 different procedures for the A320.

AfBAC Expo SK2017
See us at
ACI Africa BT77181017AfBAC Expo BT2017GroundHandling BT0303280917Aviation Africa BT18418Global Aerospace BT28218