By BO Staff Writer
State airline, South African Airways (SAA), should be investigated for corruption and lack of transformation via a Judicial Commission of Inquiry or Parliamentary Inquiry, the African National Congress Women’s League (ANCWL) said on Thursday.
In a statement, the women’s league said it noted reports which show that white businesses and individuals have benefited from keeping SAA untransformed. They say there has been a deliberate attempt to keep the State Owned Enterprise (SOE) in white hands.
“This is done consciously to continue with only white owned suppliers being major beneficiaries of tenders at SAA. It is also a plan to ensure that only male occupies senior positions,” the league said.
In its list of concerns, they outline how the airline spends more than R10 billion a year on Jet fuel from 5 suppliers which have been providing SAA with jet fuel for around 82 years.
The league also expressed concern about the hiring of American consultancy firm, Bain & Company on a joint venture with South African based Abacus Advisory, on a 3 month contract to ‘turn around’ the airline.
In 2001, Bain & Co received over R350 million in consultancy fees from SAA over a period of two years. Coleman Andrews, who was the CEO of SAA at the time, was also the CEO of the same consultancy firm which provided services to SAA.
“Former CEO of SAA Coleman Andrews, who received a payment of R232,2 million, tax free, during his two-and-half years at SAA failed to disclose to the Board of SAA during his appointment that he was a founding member of Bain & Company together with his wife,” ANCWL said.
Among other concerns, the league noted the awarding of all strategic tenders to white companies, noting that only 2% of the company’s “R24 billion of annual procurement spent is on black suppliers.”
They also highlighted that, “retired and resigned pilots from SAA are allegedly still receiving SAA benefits even after being employed by other airlines. This is due to an evergreen agreement contract signed in the 90’s.”
The women’s league showed how disproportionately white and male representation of staff is:
- Of the 225 Senior Captains: 217 are white males, 4 black males and 4 white females.
- of the 116 Captains: 108 are white males, 3 black males, 2 coloured males,1 Indian male, 1 white female and 1 Indian female.
- Of the 288 Senior First Officers: 187 are white males, 22 black males, 21 Indian males,16 coloured males, 38 white females, 2 Indian females and 2 coloured females.
- Of the 130 First Officers: 43 are white males, 32 black males, 22 Indian males, 10 coloured males, 17 white females, 5 African females and 1 Indian female.
- Of the 18 Ground Managers: 10 are white males, 3 Indian males, 3 white females and 2 black females.
- Of 21 Pilot managers: 14 are white males, 5 black males, 1 coloured male, 1 Indian male, 3 white females and 2 black females.
Read the full ANCWL statement here.