SAA denies wrongdoing in hiring UK consultants
● Consultants hired by ailing airline South African Airways in December have once again raised questions about the flouting of processes by the airline’s executives.
After the National Treasury rejected a bid by SAA to hire four consultants at a cost of R13-million for six months’ work outside of procurement processes, the airline absorbed three of them on short-term employment contracts.
Although the airline did not confirm the costs associated with the consultants, Business Times understands they come at a cost of à1 000 (R14 505) a person a day, exclusive of accommodation, which has been at the Southern Sun International Airport Hotel at OR Tambo International Airport, where a standard room starts at R3 700 a night.
If the consultants work a five-day week for the contracted six months, they will walk away with R5.2-million.
SAA whistleblowers claimed the three, Matina Massa, Augusto-Viansson Ponte and Ben Leon, were hired at SAA’s office in the United Kingdom to allow the airline to absorb them without advertising the jobs in South Africa.
“It was taken to National Treasury and Treasury declined. SAA then instructed procurement to run with the process and it was pushed back to HR. What does not make sense is why they employed people in the UK when they are working in South Africa,” said an SAA insider.
SAA disputed this, saying both options to contract the three as consultants or shortterm employees were available to the airline.
“It was important for the board and executives to take a quick decision on a range of issues to stop the deteriorating situation at the airline,” spokesperson Tlali Tlali said.
Tlali said the appointments, which happened in December, did not need to be advertised as they were fixed-term contracts, adding that the consultants were employed in the UK purely because they were UK citizens and SAA had an office there.
“There is nothing anomalous for SAA to employ staff from any office and deploy them where they are needed,” Tlali said.
Business Times understands that Treasury instructed SAA to advertise the position either through a supply chain or a human resources process.
In the rejected motivation to Treasury, SAA said the specialists, who will work with recently appointed chief risk officer Peter Davies, had worked extensively with Davies to turn around other ailing airlines.
But the airline neglected to say the consultants were part of Airline Management Group, founded by Davies in the UK.
Tlali said SAA’s board was made aware at the time of Davies’s appointment that he would require a restructuring team “to be able to start as soon as possible due to the deteriorating position of SAA”.
“Peter Davies is the founder of Airline Management Group (AMG) Ltd, a team of airline professionals with senior positions in airlines globally. All individuals named are openly on the AMG website as they have worked together in the past on a number of successful airline turnaround and start-up projects around the world,” said Tlali.
“When working on airline projects, the individuals all contract via their own individual consultancy business or as employees on a fixed-term contractual basis.”
SAA said now that permit applications for the three had been finalised, they would be accommodated in self-catering apartments.
“This will benefit the airline and bring convenience and comfort to the team as no one wants to live in a hotel for prolonged periods,” Tlali said.