SAA details allegations against Kalawe
THE SAA BOARD and its suspended chief executive, Monwabisi Kalawe, are set to face-off before an independent external chairperson, in what will probably overshadow plans to resuscitate the beleaguered airline.
A possible bruising showdown, which could sink the already struggling airline deeper into a morass, has been scheduled for March 16, according to a SAA statement yesterday.
Kalawe is facing a disciplinary process following allegations of misconduct.
For the first time since Kalawe’s suspension in October, SAA has publicly shed some light on the issue by detailing the allegations levelled against him.
It said the allegations related to alleged non-compliance with various critical policies and procedures; as well as legislation, including the Public Finance Management Act; SAA’s supply chain management policy; the job evaluation policy; recruitment and selection policy and the delegation of authority policy; gross misrepresentation; failure to act at all times in the best interests of SAA; and an alleged improper relationship with a senior female employee.
Depending on the outcome of the hearing, it could lead to a lengthy and costly court battle.
“The disciplinary complaints that the chief executive will be required to answer before an impartial and independent chairperson are those that have been investigated by reputable, external and independent forensic attorneys and are pursued on the advice of senior counsel,” SAA said.
Kalawe and his attorney were not available for comment yesterday.
The continuing boardroom fiasco could compound SAA’s leadership crisis and derail the implementation of a turnaround strategy meant to restore the airline’s credibility.
The 90-day action plan has been designed to return SAA to profitability.
The airline is already grappling with a deterioration in its financial position. Depending on the outcome of the hearing, it could lead to a lengthy and costly court battle.
The inquiry follows an investigation conducted by Edward Nathan Sonnenbergs Forensics, overseen by a subcommittee of the SAA board.
It will be chaired by advocate Nazeer Cassim.
On December 11, the cabinet decided to remove SAA from the Department of Public Enterprises, and handed it over to the Treasury.
The struggling airline has a culture and history of huge payouts to departing chief executives. Since 2001, payments made to three former bosses cost taxpayers about R243.6 million.
Last month the finance ministry announced that Minister Nhlanhla Nene had approved an additional R6.488 billion guarantee for SAA, taking the total guarantees granted to the airline to R14.3bn.
The release of SAA’s financial statements for the 2013/14 financial year was delayed because the airline was technically insolvent.
Kalawe would remain on suspension pending the outcome of the disciplinary process, SAA said.