SAA's Ngqula decision welcomed

2010-07-20 20:10
Johannesburg - The SA Airways (SAA) board's decision to institute action against its former CEO Khaya Ngqula was welcomed by the Congress of SA Trade Unions (Cosatu) and the Democratic Alliance on Tuesday.

"This is a great victory for the SA Transport and Allied Workers' Union (Satawu) whose members first blew the whistle on the CEO," Cosatu said in a statement.

This followed the announcement earlier by SAA that a summons was in the process of being served on Ngqula for unauthorised bonuses for executives of R27m.

The board would also seek to recover R3.3m that Ngqula had allegedly spent on hiring hospitality suites in various sports stadiums and at least
R500 000 for free trips that Ngqula had allegedly granted to personal friends.

The total amount the board sought to recover from Ngqula was R30.8m.

Cosatu said that when Ngqula was sacked in March 2009, Satawu had rightly claimed this as a victory. "Cosatu congratulates its affiliate and sends out a warning to any other executives that the trade unions will now be even more determined to follow Satawu's example and to blow the whistle of such examples of crass materialism and theft from a state-owned asset."

The SAA board's decision to institute civil action against Ngqula arose from the findings of a forensic audit by KPMG.

Settlement astonishing


The Democratic Alliance also welcomed the SAA board's decision.

"This represents a welcome departure from the general lack of responsibility that has come to define the other heads of state-owned entities (SOEs) responsible for financial mismanagement," said DA shadow minister of public enterprises Manie van Dyk in a statement.

He hoped the boards of other SOEs would take a leaf out of SAA's book and pursue former CEOs implicated in wasting public funds.

"The decision to pursue Ngqula follows repeated calls by the DA for a thorough forensic investigation to be instituted at SAA following Ngqula's implication in tender rigging to the tune of R1bn, and his subsequent dismissal in 2009.

"It is still a matter of astonishment that he was paid a R13m settlement despite being under investigation for mismanagement, conflict of interest and procurement irregularities."

Van Dyk said that SAA's institution of action against Ngqula should become standard practice in South Africa.

The Freedom Front Plus said it had been noticeable that during Ngqula's term as CEO, public funds were dished out royally, while at the same time SAA suffered a net loss of nearly R2bn.

"The attempt to, in total, regain R30.8m is actually only a drop in the ocean, but CEOs of public enterprises will get the message that they will be held personally accountable," said FF Plus chief spokesperson on public enterprises Pieter Groenewald.
- SAPA
Read more on:    da  |  saa  |  khaya ngqula  |  dali mpofu  |  politics  |  corruption
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

 

Inside News24

 
/Music

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Up to 40% off fashion accessories

Save up to 40% on selected handbags, purses, watches, jewellery and more. Offer valid while stocks last. Shop now!

Save up to R2000 on top electronics

Get every day mind bowing savings on top electronics. Offer valid while stocks last. Shop now!

As seen on TV - New book releases at only R199 each

Get mind blowing book savings on new titles. Offer valid while stocks last. Shop now!

Save up to 50% on Women’s month treats!

Celebrate the awesome women in your life with awesome treats like beauty products, fashion accessories, bestselling books, electronics and more. Offer valid while stocks last. Shop now!

Up to 60% off - clearance sale!

Save up to 60% on appliances, books, electronics, toys, movies and more. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

The spotlight may be on you and you need to perform. This can be overwhelming and you need to stay as focussed and centred as you...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.