SAA slammed for losing millions to corruption, conflicts of interest and “ghost workers”

The ANC Women’s League has called for Judicial Commission of Inquiry or Parliament Inquiry to investigate various disturbing allegations of corruption and anti-transformation at SAA.

In a 12-point corruption report, the Women’s League has damned South African Airways for an alleged R232 million conflict of interest, poor transformation policies and “ghost workers”.

The report claims SAA is facing a number of internal and external forces which are “doing everything in their power” to stop transformation at the embattled state airline – particularly on procurement and employment equity grounds.

“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 males occupy senior positions at SAA”.

The allegations detailed in the report include:

  • The fact that SAA spends over R10 billion per annum on Jet fuel, with the suppliers for said fuel allegedly having comprised only five different companies over the past 82 years.
  • Consulting firm Bain & Company received a R208.9 million “handshake” after selling the Airline’s Fleet under the guise of turning the Arline around in 2002
  • Bain & Company also reportedly received over R12 million as part of a three year strategy contract, despite SAA having an approved turn-around strategy.
  • Former CEO of SAA Coleman Andrews is reported to have received a payment of R232 million tax free during his two-and-half years at SAA, while reportedly failing to disclose to the Board of SAA during his appointment that he was a founding member of Bain & Company together with his wife.
  • SAA is reportedly paying for ghost workers on flights too and from Florida as well as in Florida-based call centres despite SAA not flying to the city.
  • Only 2% of the R24 billion of annual procurement spent is on black suppliers.
  • Some contracts concluded by the company have  allegedly been running on month to month basis for over 15 years, while the extension of contracts excludes any new suppliers.
  • According to a recent Ernest and Young report, the irregular awarding of tenders is kept away from public domain with no action being taken against those who are fingered in the report.
  • Aircrafts are being leased internationally with SAA having to pay exorbitant amounts.
  • Tender for ticket sales is not being advertised but unilaterally awarded to companies in the “main white owned companies”.
  • 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.
  • Lack of employment equity.

Read: This is how many SAA flights get delayed each year

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SAA slammed for losing millions to corruption, conflicts of interest and “ghost workers”