Finance Minister Pravin Gordhan approved SAA’s application for a guarantee with conditions after meeting with the 11 new board on Friday.
Tryphosa Ramano, a former chief financial officer (CFO) at SAA and currently CFO of cement company PPC, was appointed deputy chairperson and non-executive director. The 10 other non-executive directors, include Investec Asset Management economist and strategist, Nazmeera Moola, and Thandeka Mgoduso, who has also served on the Reserve Bank’s board
The minister stressed that it will not be “business as usual” for the airline which is currently going through serious challenges including governance and financial difficulties, among other things.
“National Treasury outlined the mandate of the board. The primary focus is to return the airline to financial sustainability whilst also delivering on other important government objectives,” he said.
It highlighted the importance of complying with the procurement framework and outlined the Protocol on Corporate Governance which applies to all public sector institutions the roles and responsibilities and the separation of powers between non-executive directors and executives.
“The executive were encouraged to cooperate fully with the Board to furnish it with all the information it needs to fulfill its fiduciary duties,” said Gordhan.
The DA is contesting Myeni’s re-appointment as chairperson. The party said during Myeni’s time as SAA board chairperson, the national carrier stumbled from one disaster to another.
Despite the SAA not publishing annual financial statements, the DA claimed the airline is running at an apparent R1.3bn loss for the first quarter of 2016/17, a R4bn loss for 2015/16 and R4.7bn for 2014/15.