WHY DECLARE DUDU MYENI A DELINQUENT DIRECTOR?

During Ms Myeni’s tenure as Chairperson, SAA has lost an estimated R10.5 billion over a period of 5 years, despite that fact that SAA was profitable between 2010 and 2012. The company has seemingly been at war with itself, stumbling from crisis to crisis and mired by accusations of maladministration and irregular dealings, which we know to be substantive.

OUTA and SAAPA instituted proceedings against Ms Myeni, with a view to have the courts declare her a delinquent director. A successful outcome could mean that Ms Myeni is barred from serving as a director, senior executive or on the board of organisations throughout South Africa for a period of seven years or longer.SOE’s are supposed to act as catalysts and engines that drive the economy, however, in many instances, they have become organisations steeped in maladministration and corruption. OUTA will not stand and allow state coffers to be used to bailout failing these organisations which are failing due ti gross mismanagement and poor leadership conduct.We hope this action will send a strong message that accountability becomes the norm instead of the exception and that state officials come to respect the power the public can bring to bear.

WHAT ARE THE ISSUES?

The mains issues related to the legal action brought by OUTA and the SAA Pilot's Association (SAAPA) to have Ms Myeni declared a delinquent director are spelt out in the Particulars of Claim (POC) are:

1. Illegally appointed BnP Capital as transaction advisor and then extended the contract to include sourcing of funding

2. Attempted to pay a cancellation fee of R49.9 million

3. Interfered with the Emirates code sharing deal which was approved by the board

4. Misinforming the Minister of Finance by misrepresenting that the SAA Board approved of 2 Airbus aircraft instead of 10

5. Failed to oversee the implementation of corrective action to address numerous failures and questionable conduct as highlighted in the Ernst & Young report.

HOW OUTA INTENDS TO TACKLE THIS MATTER

OUTA’s work ensures that proper research and fact finding is undertaken to make the claims of Ms Myeni’s unacceptable conduct, and bring legal action against Ms Myeni through a court of law. Furthermore, as this case progresses, so too shall we explore other potential criminal charges – if and when these arise – against her and others implicated.

IN THE MEDIA

The South African Airways Pilots' Association (SAAPA) says the national carrier is quickly reaching a point where its survival is in question. It says while pilots remain committed to their work, morale is low. Captain Glen Smith, a supporter of the Association's Executive committee and also heads up the pilots' working group on development and transformation discusses the issue of transformation at SAA. Listen to the interview below.