DUDU IN THE DOO-DOO
Myeni ‘lied to Gigaba again’
SAA chairwoman Dudu Myeni has once again found herself in a compromising situation after it emerged that she allegedly attempted to halt an SAA meeting by misleading new Finance Minister Malusi Gigaba over a process to appoint a new CEO.
Ironically, Myeni was this week appealing a sanction from the Companies and Intellectual Property Commission that she received in January after she was found to have misled Gigaba on a board resolution when he was public enterprises minister four years ago.
Last week Business Times reported on how Myeni’s absence from board meetings prompted the rest of the board to seek legal advice on her actions.
The latest row revolves around her using Gigaba to try to stop an SAA board meeting which sat to decide on a permanent CEO for the ailing airline. In the end the board resolved to recommend to Gigaba the appointment of Vodacom executive Vuyani Jarana as CEO, as well as the appointment of a chief operating officer who will look after the commercial and operations divisions.
Several sources this week told how Myeni burst into the meeting on May 30 with a letter written by Gigaba, which Business Times has seen, calling for the meeting not to go ahead. The letter, which was addressed to her, advised the board not to take strategic decisions until Gigaba and the board had met again.
The board had a meeting with the National Treasury on May 29.
Gigaba wrote: “Thus you are instructed not to proceed with the board meeting scheduled for today until we have had a follow-up meeting. My office will arrange a date for our next meeting and a communication will soon be sent to you.”
The board, suspicious of Myeni’s intentions, refused to halt the meeting, which resulted in Gigaba sending a second letter a few hours later. This read: “Subsequent to the above letter, I have been informed that by the time my letter was received, the board meeting had already started. Without causing any inconvenience, kindly be informed that the meeting may proceed.” He reiterated that no major decisions should be made.
It has now emerged that Gigaba was acting on incorrect information from Myeni, who had allegedly told him the board was getting ready to make decisions related to the long-term turnaround strategy as well as the airline’s finances, when in fact it was discussing the new CEO.
Gigaba’s spokesman, Mayihlome Tshwete, said the minister had wanted the board to continue to brief him on strategic issues as their meeting on May 29 had not covered everything. “Any newly appointed minister would want to be kept in the loop about decisions — on, for example, long-term contracts and the long-term turnaround strategy — which may have a long-term impact on his duties of providing shareholder oversight.”
Tshwete said the appointment of the CEO “is in the process to be reviewed and approved by cabinet.”
Several sources this week spoke of how Myeni, unhappy with the CEO shortlist, frequently
What They Said She did everything to stall the process SAA source
He was unhappy with the name Government source
called for the board to continue the process to find a new CEO started by the previous board. The shortlist contained Inati Ntshanga, Jerry Vilakazi, and Peter Matlare, but this was nullified by the new board, which insisted on starting a new process.
“This made her very unhappy and she did everything to stall the process, including not attending meetings as well as organising outside the board processes,” said an SAA source who is not permitted to talk to the media.
Attempts by Myeni to get Gigaba’s approval to appoint Vilakazi were met with flat refusals by the minister, who “was uncomfortable with the name as well as the fact that he was her pick”, said a government source close to the minister. “Added to that was the fact that she is the outgoing chairperson. You want to have someone there who will enjoy the full support of the board,” he said.
Myeni has had a fractious relationship with Gigaba. There has been speculation that Gigaba’s removal from public enterprises was related to his refusal to entertain her antics.
SAA spokesman Tlali Tlali said the board was anxious to conclude the appointment of the CEO in order to return the airline to financial stability. “There are, however, internal processes to be followed . . . and SAA is not able to comment until such processes are concluded.”