Gigaba flies solo on Myeni

Members of parliament’s standing committee on finance yesterday raised serious concerns about the legality and the wisdom of extending Dudu Myeni’s term as chairperson of South African Airways (SAA).

Finance Minister Malusi Gigaba has asked Myeni, pictured, to remain at the helm until the struggling carrier’s annual general meeting in November, director-general of finance Dondo Mogajane confirmed.

This prompted questions as to whether Cabinet approved the extension, and Deputy Finance Minister Sibusiso Buthelezi conceded that Cabinet was not consulted. He said it was the ministry’s understanding that SAA’s memorandum of incorporation (MOI) empowered the minister to take a unilateral decision to extend the term of the chairperson.

Parliamentary law advisor Frank Jenkins disagreed. He said the MOI only allowed the minister to act in this manner when the terms of office of all nonexecutive members of the board expired at once. “In light of that … you cannot just single out the chairperson.”

Buthelezi said other lawyers might reach a different conclusion to Jenkins.

Dissident ANC MP Derek Hanekom reminded Buthelezi that it was standard practice to take decisions such as these to Cabinet for approval.

Fellow ANC MP Thandi Tobias rejected the stated motivation for the extension — to ensure continuity up to the AGM — and said it appeared the committee was not being told the real reason. She proposed that Jenkins be asked to draw up a formal opinion to give to the Treasury.

Democratic Alliance MP Alf Lees noted that SAA’s lenders were loathe to extend SAA’s loans for as long as Myeni was serving as chairperson.

“Lenders are reticent about rollovers when Ms Myeni remains. That should influence our recommendation about whether Ms Myeni stays on,” he said.

Economic Freedom Fighters chief whip Floyd Shivambu agreed, saying: “I think it is one of the most important issues.”

Shivambu said Cabinet could not confirm Gigaba’s decision as she had already served a maximum of three terms.

Myeni was reappointed by former finance minister Pravin Gordhan, with the proviso it was for a single term.

It was widely believed he was under pressure from President Jacob Zuma to reappoint her. – ANA