Gigaba removes Kona from SAA board
Public Enterprises Minister Malusi Gigaba on Monday, at a South African Airways (SAA) shareholder meeting, removed suspended acting CEO Vuyisile Kona from the national carrier’s board.
This followed SAA’s announcement last month that it had placed Kona on precautionary suspension after certain allegations, which included a breach of the Public Finance Management Act, came to its attention.
“The Minister considered it prudent and in the interest of SAA that there be stability and cohesion in the leadership of the airline. In the Minister’s opinion, the relationship between the board and Kona had deteriorated to a point where it will not be possible for him to lead or function optimally either as a member and board chairperson,” the Department of Public Enterprises (DPE) said in a statement, adding that Duduzile Myeni would continue in his role as chairperson.
Gigaba’s spokesperson Mayihlome Tshwete told Engineering News Online that Kona’s membership on SAA’s board was considered “unattainable” by the Minister.
“It is a risk the Minister was not willing to bear for a company that is facing the number of challenges SAA is. The Minister’s view is that the focus of the board should be to find a permanent CEO, produce a turnaround strategy and implement it. To have Kona on the board would be an unnecessary distraction to these three priorities,” he said.
However, the DPE pointed out that allegations against Kona had little bearing on the Minister’s decision.
“Further, this decision should not be construed in any way as a prejudgment or determination of any of the issues pending between Kona and SAA,” the department put forward.
Meanwhile, Mango CEO Nico Bezuidenhout was selected take over as SAA’s acting CEO until a permanent replacement was recruited.
Tshwete confirmed that the airline had started the process of recruiting a permanent CEO and was currently shortlisting and carrying out interviews. The company’s board was confident it would conclude the process by March 31.
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