Treasury not likely to ground Myeni until 2018

South African Airways (SAA) chairwoman Dudu Myeni is not headed for the departure lounge just yet and may be at the helm of its board until January 2018.

The Treasury confirmed that it had asked Myeni to stay on at the national carrier until its annual general meeting, which is scheduled for “sometime in November”.

Business Day understands that the airline’s board wrote to Finance Minister Malusi Gigaba in August, asking for the meeting to be held in January because of delays in finalising SAA’s annual financial statements. The national carrier also looks set to miss the deadline to table its 2016-17 financial statements in Parliament at the end of September due to the delays.

Gigaba did say in Parliament earlier this week this might be an eventuality and his department was preparing a request to the legislature in that regard.

Business Day has been able to establish that the airline has not started preparing its accounts yet, as it was awaiting a R10bn capital injection from the Treasury before it could work on its statements.

“The chairman’s term will end on August 31 2017, but she has been asked to continue to serve until the next AGM. She serves at the prerogative of the minister,” the Treasury said. “The AGM is scheduled to take place sometime in November.”

Myeni was reappointed board chair on September 2 2016 for a one-year, nonrenewable term that is supposed to end on Friday. But the latest development has raised eyebrows, with some questioning the wisdom and legality of Myeni staying on beyond the lifespan of her contract.

Business Day understands that the standing committee on finance, which exercises oversight on SAA, is split on Myeni, with some of its members saying that the “ANC itself is divided on her”.

It is understood that some committee members had long wanted to see the back of her, while others wanted Myeni to stay on at the airline.

Standing committee on finance chairman Yunus Carrim on Thursday declined to comment specifically on Myeni, saying this was the domain of the executive, but did highlight some issues with regard to the board’s skills mix.

“The committee has several times raised the need for the SAA board to be strengthened through the appointment of people with more expertise in the aviation industry.

“Both the previous and current minister agreed on the need for this, and we hope, given the huge challenges confronting SAA, that people with the necessary experience and expertise will be appointed,” he said.

SAA spokesman Tlali Tlali referred questions to the Treasury, saying this was a matter for the shareholder.

Myeni was appointed to the board in 2009 and became chairwoman in 2012. Her tenure has been marked by several waves of board and executive exoduses, as well as continued financial turbulence.

Myeni’s one-year reappointment to the board was widely seen as a compromise because she had a frosty relationship with former finance Pravin Gordhan, but has strong ties to President Jacob Zuma.

She also championed a controversial 30% set-aside procurement policy at SAA that a legal opinion found unlawful.

The Companies Tribunal said that it had received one application from SAA for an extension of time to hold the annual meeting. “If no AGM is held within the extended time granted … the matter becomes noncompliant with the [Companies] Act.” The Companies and Intellectual Property Commission would then get involved.