Who is JB Magwaza? Why is there only one aviation industry expert on the new board? The winds of change are finally blowing through SAA!
These were some of the most common reactions by journalists, business people and political parties on social media site Twitter after official news broke earlier today that controversial SAA chairperson, Dudu Myeni, would be replaced by Johannes Bhekumuzi Magwaza.
Bloomberg news agency described Magwaza as a “veteran corporate executive”, noting that he was the founder of Nkunzi Investment Holdings (Pty) Ltd and served as its executive chairperson. He has been a director of a number of national and international companies.
Business journalist Bruce Whitfield echoed an earlier tweet by Democratic Alliance leader, Mmusi Maimane, tweeting: “JB Magwaza and Nolitha Fakude have had long, dignified and successful board careers. Worked at Nedbank board previously.”
Alf Lees, Democratic Alliance deputy shadow minister of finance, welcomed Myeni’s removal but expressed concern that she remained chairperson of board until Minister of Finance Malusi Gigaba’s “special meeting with the new board” on November 3, which also seems to have replaced the scheduled and vital AGM.
“The 3rd of November is the date that the Minister told Parliament the SAA 2017 AGM would take place, not just a ‘special meeting’ with the board,” Lees pointed out, adding that Gigaba was wrong in his thinking that “by finally removing the toxic Myeni”, SAA would be saved.
“This is not the case. The airline is bankrupt and requires R10 billion to continue to limp along. It is time to face up to the fact that SAA can only be saved if it is put into business rescue, stabilised and sold,” Lees said.
Another opposition party, the Economic Freedom Fighters (EFF) – which has long been vocal about its concerns around Myeni’s relationship with president Jacob Zuma – said in a statement it welcomed the “the long-overdue removal of the incompetent, interfering and delinquent Dudu Myeni” noting that it hoped the newly appointed board would not go the route of interfering and corrupt members appointed by the boards of Transnet, Eskom, and Denel.”
Earlier this morning, Gigaba officially announced the appointment of the six new members to the board of SAA.
Nolitha Fakude will serve as deputy chairperson. Other new board members are Geoff Rothschild; aviation expert Ahmed Bassa; Tinyiko Mhlari and Martin Kingston.
The board changes were necessary to implement the airline’s structural strategy and bring it to financial stability according to a statement released by Treasury today (Thursday).
“At the heart of these appointments is a commitment from the South African government to strengthen the airline, and create conditions to see the transformation of all our state-owned companies,” Gigaba added.
