Gigaba: SAA must be depoliticised to improve its finance stability

Finance Minister Malusi Gigaba says the national airline has been underperforming due to poor governance.

FILE: Finance Minister Malusi Gigaba. Picture: Reinart Toerien/EWN.

JOHANNESBURG - Finance Minister Malusi Gigaba says that South African Airways (SAA) needs to be depoliticised as an entity in order to improve its financial stability.

The poor performance of the cash strapped airline has been largely blamed on its chairperson Dudu Myeni.

Myeni has been accused of causing the financial decline of the national carrier and hampering its turnaround.

Gigaba has indicated that SAA will get a new chairperson before the end of the year.

He says the national airline has been underperforming due to poor governance.

“That’s why we need to appoint a new board and chairperson, regardless of their political leanings. But, all of them must not have any direct and immediate linkages with the political principals in government.”

Last week, Treasury said that in the interest of good governance, it will be replacing Myeni before the end of the year.

That is in spite of a decision in September to extend her contract when her eight-year tenure came to an end.

Myeni has already served two years longer than the acceptable two three-year terms that are allowed.

Treasury spokesperson Mayihlome Tshwete says that Gigaba is committed to good governance.

He earlier said that a replacement would be found by the time her contract ended.

Additional reporting by Lindsay Dentlinger.

(Edited by Zamangwane Shange)