SAA responds to alleged tender irregularities

The Board of Directors of South African Airways has released a statement responding to ‘inaccuracies’ in stories that are circulating in media outlets alleging ‘Shady dealings at SAA’ and ‘Acting SAA board chairperson at the centre of R200m tender row’.

In the statement, SAA says that it had 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 processes.

Furthermore, the internal audit report makes no finding whatsoever against any individual member of REMCO, especially the SAA Acting Chairperson, Thandeka Mgoduso. Mgoduso has no commercial association with 21st Century. SAA says there were also no secret meetings between Mgoduso and 21st Century.

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