CEOs resign all the time – Gigaba

2012-11-13 09:53

The resignation of the chief executive and two senior managers at SA Airways is not a reflection of what is happening in the parastatal, Public Enterprises Minister Malusi Gigaba has said.

“It is regrettable that it happened, but CEOs resign all the time,” he told a business breakfast in Fourways, north of Joburg, today.

CEO Siza Mzimela, corporate affairs general manager Theuns Potgieter, and general manager for legal, risk and compliance Sandra Coetzee, resigned from the airline in October.

This came barely two weeks after most of the board, including chairwoman Cheryl Carolus, also quit, saying there was a lack of support from its shareholder, the public enterprises department.

Gigaba described the resignations as a soccer team leaving the game before the final whistle.

He said SAA officials had asked him to negotiate a financial guarantee with Treasury, which was a lengthy process.

Gigaba explained that his department and Treasury had needed to ask questions, evaluate the financial statements and study the facts presented.

“There were growing concerns raised about the airline... We were not going to simply jump without studying the issue vigorously,” Gigaba said.

He said the relationship between the government and the SAA should not only be a financial one. South Africans were concerned about the airline’s sustainability, Gigaba said.

Speaking about the collapse of low cost airline 1Time, Gigaba said his main concern was with the employees who had lost their jobs.

“I wish this had not been the case ... I don’t think that the reason 1Time has gone under is because of unfair competition,” he said.

“I think that it is because of investment decisions that the company itself undertook ... The more the competition, the better for the customers of all of these airlines.”

He said government did not have the capacity to help all companies in financial difficulties.

Earlier this month, 1Time announced it had applied for business liquidation, and that all of its flights had been grounded.

Comair Ltd chief executive Erik Venter has blamed state-subsidised Mango for 1Time’s demise.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


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 network.


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.