JOHANNESBURG, January 12 (ANA) – Citibank’s decision to withdraw South African Airways’ (SAA) credit facility worth R250 million further underscores the need for the airline’s Chairperson Dudu Myeni to be removed, the DA said on Tuesday.
The decision has left the already cash-strapped national carrier in a precarious position that could leave it insolvent by the end of the week.
Citibank has refused to renew the facility without further government guarantees.
DA Shadow Minister of Public Enterprise, Natasha Mazzone, believes Myeni’s removal is a matter of urgency.
“It is during Myeni’s tenure that SAA has become the laughing stock of the aviation community, a far cry from its lofty heights of being one of the world’s leading airlines,” said Mazzone.
An equity partnership agreement with Emirates, estimated at worth more than R2 billion, could’ve alleviated current financial woes had it materialised in June last year. But Myeni allegedly snubbed the deal under suspicious circumstances.
The DA wonders how much longer Myeni can remain in her position given all the scandals and mismanagement at the airline.
“An expert in the aviation industry, not a Zuma acolyte, must be employed to oversee the turnaround of the airline,” added Mazzone.
She said Finance Minister, Pravin Gordhan, must continue to take a stand against Myeni and refuse to offer any more government guarantees until she has been replaced.
“We cannot allow state-owned enterprises to be run into the ground as a result of the President’s policy of appointing friends, cadres and political allies – without the requisite skills and experience – to senior management positions.”
President Jacob Zuma said at the weekend that his deputy, Cyril Ramaphosa, was working with SAA to resolve its financial problems.
