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SAA spends R21m on fraud and corruption inquiries — but nobody gets nailed

Despite national carrier spending R21m investigating internal fraud and graft over three years, there is no evidence of legal or disciplinary against anybody

A South African Airways Airbus A320. Picture: SAA
A South African Airways Airbus A320. Picture: SAA (None)

South African Airways (SAA) spent R21m on 16 investigations into internal fraud and corruption over the past three years without any evidence of individuals being held to account through legal or disciplinary action, the Democratic Alliance (DA) said on Tuesday.

As SAA board chairwoman Dudu Myeni, reappointed in September 2016, had presided over these investigations, the DA felt "vindicated" in its position that the appointment was irrational, DA deputy finance spokesman Alf Lees said on Tuesday.

In reply to a parliamentary question to Finance Minister Pravin Gordhan, the Treasury outlined 16 investigations that took place from 2013 to 2016, including an R3.6m probe into why the airline is incurring losses and a R1.8m investigation into commercial relationships with Mango.

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SAA, the Treasury, the Department of Public Enterprises and various external parties are working on a possible restructuring and recapitalisation of the embattled airline.

Gordhan said in February it was hoped this could be resolved by the mid-term budget review in October.

On Wednesday the Organisation for Undoing Tax Abuse (Outa) is expected to give clarity on a legal challenge against Myeni, seeking to declare her a delinquent director.

Outa has not yet spelled out the nature of the challenge, but it indicated it had collected evidence. It is expected to argue that contracts and policies adopted by SAA were in violation of Myeni’s fiduciary duty.

Lees said on Tuesday he had requested that the Treasury give the DA with copies of all investigations, ahead of SAA’s appearance before Parliament’s portfolio committee on March 29.

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