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11h ago
By Dineo Faku
JOHANNESBURG – THE DEPARTMENT of Public Enterprises (DPE) said on Friday it was working with stakeholders to find solutions for national airline SAA, as agitated employees who have not been paid in eight months demanded salaries.
The department said it sympathized with the plight of the workers and asked them to be patient, adding that the government believed the key to solving the difficulties faced by the beleaguered national airline was the completion of the business.
“That is why the department is working with Business Rescue Practitioners (BRP) to find the best restructuring solutions for airlines, including the payment of wages. Any updates on the completion of the BRP process will be communicated when details are available, ”said the DPE.
On Thursday, reports emerged that the DPE was talking to Canadian investor Fairfax Africa about a stake in the airline.
However, DPE spokesman Richard Mantu said the department was speaking with several potential investors.
“The process of identifying a strategic equity investor is currently underway with several parties that have expressed interest in SAA. We will release more details once the process has progressed sufficiently, ”said Mantu.
The government allocated R10.5 billion for the implementation of SAA’s business resume plan, which will pave the way for a new entity with fewer staff and a new management team.
On Thursday, the airline’s BRPs said they had received R1.5 billion from the DPE on Monday afternoon, but the funds were still unusable.
“The conditions that were stipulated on how it should be spent are in contravention of both the Labor Relations Law and Chapter 6 of the Companies Law. Therefore, we cannot use the funds until the DPE has modified the conditions, ”the BRP said in a statement.
Members of the National Metalworkers Union (Numsa) and the South African Cabin Crew Association (Saccca) demonstrated outside SAA’s Kempton Park headquarters on Thursday to demand payment of outstanding wages.
Numsa and Sacca also opened a criminal case against the airline’s board of directors and executives for failing to fulfill their fiduciary duties and allowing corruption to multiply through white-collar crimes in the group.
The DPE said that in the past it had worked with SAA management to restore good corporate governance and combat corruption in the national airline.
He said that as one of the key focus areas, SAA had examined the main contracts related to logistics, information technology, transaction advisory services, ground handling and security.
“The DPE is aware that the airline took disciplinary action against the employees involved. This resulted in termination of employment for some senior managers and executives involved in misconduct, ”the DPE said, adding that thirteen other employees were found guilty of misconduct and received final written warnings, while nine were fired and another four resigned.
BUSINESS REPORT
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