In-flight horror movie
The case against suspended SA Airways (SAA) executive Thuli Mpshe is looking increasingly flimsy, fuelling claims that the charges were trumped up by those close to SA Airways chair Dudu Myeni.
Mpshe, who was suspended three months ago, is the GM of human resources and a former acting CEO.
The Financial Mail has learnt that the charges against her — which SAA has yet to reveal — hinge primarily on whether she and another former CEO, Nico Bezuidenhout, “improperly” extended the contract of the airline’s former finance chief, Wolf Meyer, and alleged abuse of company resources.
This adds further intrigue to an airline, already R4bn in the red, where questionable board decisions appear to be the order of the day.
In recent months, the airline has even jokingly been referred to as “Hollywood” — where everyone is in an acting position. As it stands, SAA doesn’t have a full-time CEO, finance director, chief commercial officer, chief strategy officer, CEO of SAA Technical or human resources chief.
Well-placed sources at the airline have told the Financial Mail that Mpshe has been accused of abusing resources by taking on a “security detail” after she was appointed acting CEO last August.
Mpshe had temporarily stepped into the role after Bezuidenhout quit to return to SAA’s low-cost subsidiary airline, Mango.
At the time, Bezuidenhout was said to be furious that Myeni had blocked a deal with Emirates which could have generated as much as US$200m/year for SAA.
Asked for comment on Mpshe’s charges, SAA spokesman Tlali Tlali refused to discuss any details.
“We are not able to comment on these matters at this stage, especially given that the investigation has not yet been concluded and no decision has been taken on any possible disciplinary action,” he said.
Corridor talk first emerged in February that Mpshe, who is well regarded by her colleagues, had been targeted for removal. Myeni was understood to be a driving influence.
This latest drama underscores the influence of Myeni, who has courted criticism by taking inscrutable decisions more in line with those of an executive, rather than a nonexecutive chair — albeit one close to President Jacob Zuma.
The charges against Mpshe seem all the more implausible considering that it was Myeni herself who pushed for Meyer’s contract to be extended. At the time, Meyer was central to a deal to swap short-haul Airbus aircraft for long-haul aircraft — a swap that saved SAA R1.4bn.
But after Bezuidenhout and Mpshe had extended his contract, the board apparently had second thoughts and refused to ratify that decision.
The charges relating to Mpshe’s security detail are equally surprising, since the top brass of state-owned companies, such as Eskom, Transnet and Prasa, routinely get private security.
At SAA, this practice dates back to the 1990s, when numerous “restructurings” sparked threats against management. Mpshe became acting CEO at a time when the airline was contemplating retrenching as many as 1,000 people.
One insider describes the atmosphere in SAA as “poisonous”, adding that any staff member who doesn’t fall in line with the board’s demands is removed.
The method includes verbal threats, phones being tapped, e-mails being monitored and anonymous “whistleblower reports”, he says.
This tension at the airline has resulted in an exodus of experienced aviation staff, including almost the entire top tier of managers at the commercial division.
For example, Sylvain Bosc, the suspended chief commercial officer brought in as a turnaround specialist to rescue SAA, remains on suspension eight months after he was first ordered to take “special leave”. Bosc was accused of manipulating the price assumptions for a route to Abu Dhabi.
Bezuidenhout, now at Mango, is the last man standing. But there are doubts about how long he can withstand the Myeni-era purge.
Though Mango is SAA’s only profitable division, Bezuidenhout is understood to be at the end of his tether with Myeni's meddling. He has clashed repeatedly with her. In particular, he refused to subject Mango staff to the state security agency vetting process, initiated to identify leaks to journalists about SAA’s financial dysfunction.
Mpshe did not respond to requests for comment.
National treasury, which has refused to give SAA any further financial guarantees until it sorts out its management and board, declined to comment.
“We’ve made our position on the leadership matter clear: that stability in management and good governance are key for improving the financial performance of the airline,” says treasury communications director Phumza Macanda.
As a result of treasury’s diktat, the bankrupt SAA hasn’t been able to file financial statements as its auditors won’t sign off accounts without a government guarantee.