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

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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