Vodacom man may lead SAA
• Group executive Vuyani Jarana said to be favoured by several board members of crisis-hit national carrier
South African Airways has identified Vodacom Group executive Vuyani Jarana as the leading candidate to become the state-owned carrier’s first permanent CEO since November 2015.
South African Airways (SAA) has identified Vodacom Group executive Vuyani Jarana as the leading candidate to become the state-owned carrier’s first permanent CEO since November 2015, according to three people familiar with the matter.
The debt-laden airline has not made a profit since 2011 and is in talks with banks about repaying, or refinancing, R8.9bn of loans due at the end of the week. The carrier needs an experienced executive from the private sector to turn it around, said one of the people, who asked not to be named because the information is not public.
Jarana, 46, has been head of Vodacom’s enterprise division since 2012 and previously had been chief operating officer of the wireless carrier. He was the preferred choice of a number of members who had been appointed to the SAA board by the Treasury in 2016, one of the people said. Chairwoman Dudu Myeni, who also heads President Jacob Zuma’s charitable foundation, prefers a different candidate, the person said. Jarana declined to comment. The identity of SAA’s new CEO “is currently under consideration by the shareholder”, spokesman Tlali Tlali said, referring to the Treasury. “The shareholder department may decide to table the name of the recommended candidate to the Cabinet for final approval. We have to wait until the processes have been finalised before we announce the CEO-designate.”
Jarana has not been offered a job by SAA and is focused on delivering Vodacom’s business strategy, a spokesman for Vodacom said in an e-mailed response to questions.
Treasury spokeswoman Yolisa Tyantsi could not immediately comment when contacted by phone.
After the board identifies a candidate, the name will have to be presented to Finance Minister Malusi Gigaba, who will seek Cabinet approval for the appointment, the second person said. Only then can an offer be made to the candidate, the person said, adding that the process could take until the end of July.
The Sunday Times reported last week that Myeni attempted to halt an SAA board meeting aimed at approving Jarana’s nomination as she did not approve of the candidate.
SAA has been run on an acting basis by chief technical officer Musa Zwane since 2015.
On Tuesday, SAA and the Treasury said they were in talks with lenders about settling R2.3bn of R8.9bn in loans due after one of the banks refused to ease the terms of the debt.