Don’t blame the unions for SAA’s demise, blame the executive

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SAA’s battle for existence lies with consecutive boards, their executive and senior management teams, and the government, writes Simon Mantell

Politics attracts neither the brightest nor the best, so it is little wonder that government ministers have failed to appoint ‘real’ directors to SAAstrike action will probably result in a fatal stall for the airline, which has burned through a reported R28bn in National Treasury bail-outs since 2007.

It is they who have appointed the SAA board of directors, who have in turn appointed CEOs, acting CEOs and executive management to run SAA. As space does not allow a detailed analysis of the SAA group income statement, the headline observation since 2007 is that, on average, smoothed out expenses have exceeded revenue by R2.5bn a year, resulting in the inevitable bailouts from the treasury.

Had SAA boards implemented sound internal controls all those years ago, it is not inconceivable that savings of 10% of annual procurement, or R2bn, would have been made each year. Politics attracts neither the brightest nor the best, so it is little wonder that government ministers have failed to appoint “real” boards of directors to SAA. Had proper boards been appointed, there would have been none of the pie-in-the sky, “” trotted out each year at press conferences, because CEOs with the appropriate and proven experience and capability would have been appointed from 2007 onwards to provide direction and effect the necessary changes required.

 

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Can someone tell me what this business rescue is going to cost. The reason for the losses are known they just have to be implemented. Easy peasy but I am sure the business rescuers will make it very complicated for financial reasons.

Not according to jamandas

The unions have put the last nail on the SAA casket. They should have tried to resuscitate it.

Blame MYANC they have f**led up South Africa

South Africa don't need, nor want, nor deserve an airline. Let all these snobnose Ministers pay for flights on other airlines! They are spoilt rotten and not worth much! None of them!

The unions did not mind to share in the glutony...

indeed we should blame them both. The executives chosen by their skin color and kinship with politicians and the Union that knowing that the company is on the verge of bankruptcy still went on strike wanting salary increase!

Nice try Unions knew exactly what was going on but did nothing, now that there employees effected and union bosses pockets will effected they only stepping up? Stop writing about surface issues and dig deep into human behavior as well

Blame the onerus evergreen contracts DPE_ZA

Spot on

Funny that the executives have tobe blamed, aren’t they just some incompetent ANC buddies? Why not blaming the corrupt MyANC for its shit politics ?

Blame MYANC

I blame everyone involved...

Yebo.....it’s not the Unions that have changed CEOs..with the coming of a new season....I think the blame lies at political leadership nje.

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