Report: SAA CEO splurging millions on exec salaries, foreign consultants
Concerns have been raised about SAA’s soaring expenses, with reports indicating that the latest government bailout has already been used up.
JOHANNESBURG - New allegations have emerged about how the South African Airways (SAA) CEO has been splurging millions on executives’ salaries and foreign consultants.
The Mail & Guardian is reporting the struggling airline's recently appointed chief executive, Vuyani Jarana, has justified the increased expenditure to address a severe skills shortage.
SAA recently received yet another R5 billion bailout from Treasury.
Concerns have been raised about SAA’s soaring expenses, with reports indicating that the latest government bailout has already been used up. It's also alleged that the airline is paying R25 million to the Deutsche Bank in a deal to analyse its financials and restructure its debt.
SAA is reportedly also spending money on seven new executives, upgrading some executive positions and paying expensive foreign consultants for work that could be done locally.
The airline reported losses of more than R5 billion in the 2016/2017 financial year and cut billions in revenue by cancelling several domestic and international routes.
SAA says that some of the allegations are inaccurate and it will be responding later today.
(Edited by Shimoney Regter)