Statement By The Board Of Directors Of South African Airways On Alleged Tender Irregularities

JOHANNESBURG, 15 October 2019. The board of Directors of South African Airways (SAA) wishes to correct baseless and factual inaccuracies in stories circulating in media outlets alleging “Shady dealings at SAA” and “Acting SAA board chairperson at the centre of R200m tender row.” The original story was published by the Sunday Independent newspaper.

SAA identified the need for a professional service provider to design an appropriate management system for executives. This new performance management system would align the SAA performance management system with the Department of Public Enterprises performance guidelines.

The board of directors wishes to clarify that although the appointment of the service provider, 21st Century, was the subject of an investigation by SAA’s internal audit department, the amount involved was R344 000 and not “more than R200-million” as reported.

The appointment of the service provider was managed by SAA Supply Chain Management (SCM), not by the board of directors. The SCM of SAA is entirely responsible for all procurement process. Furthermore, the internal audit report makes no finding whatsoever against any individual member of REMCO, especially the SAA Acting Chairperson, Thandeka Mgoduso. Ms Mgoduso has no commercial association with 21^st Century. There were also no secret meetings between Ms Mgoduso and 21^st Century.

The observations of the report will be considered by the board in due course.