Last year we reported how SAA is splurged millions on executives and consulting firms in a spending frenzy that was described as “worrying”.
Struggling state airline SAA is splurging millions on executives and consulting firms in a spending frenzy that has been described as “worrying”.
• SAA has hired a new general manager for legal, risk and compliance, Mpati Qofa, at a salary of R4.2‑million — double that of her predecessor, Ursula Fikelepi; These include acting chief financial officer Robert Head, whose remuneration SAA has declined to confirm. This is despite Head being an executive at a state entity, meaning that his package should be in the public domain.
The current spending spree at SAA is in direct contradiction with recent moves by state power utility Eskom — another parastatal in the same boat as SAA — to curb staff costs.Public sector unions are in a standoff with Eskom’s management over an announcement this week that there would be no salary increases and no bonuses for top management.
The insider continued: “Outside, there are people who will ask these questions and say: ‘If you are taking away volume but you are not cutting your costs proportionately, how do you claim you are going to make money?’” He also said the Boeing pilots had been added to the Airbus roster, and were not being paid for doing nothing. “What is real, though, and we have been open about it is that we have excess pilots and we are busy finding ways to address the challenge.
“In order to fix this, you have to reduce your scale of operations overall and you have to cut costs. The two actually go together … You need to have a balance in that,” he said. The insider said SAA’s board —which had apparently approved the security contract on an emergency basis without any evidence of a credible threat — was failing to hold Jarana to account for his spending.
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