South African Airways management will implement internal investigations and disciplinary processes to dig into the airline’s bleak past and rid itself of the forces that finally brought the airline to its knees in 2020 and ceased operations.
The interim SAA board made the announcement following the findings of the first part of the State Capture report that implicated former SAA chairperson Dudu Myeni, found to have “sabotaged” the airline from within, while the board said it would also make every attempt to recover assets and money lost during that period.
The State Capture report heavily implicates Myeni, a close ally to former president Jacob Zuma, and former board member Yakhe Kwinana. Both Myeni and Kwinana were central (for subscribers) to the eventual collapse of SAA and former acting CEO Mathulwane Mpshe can attest to that describing the emotional and financial trauma wrought on her by Myeni (for subscribers).
The report found that Myeni acted with “negligence, incompetence and deliberate corrupt intent” while Kwinana, who served on the board between 2009 and 2016 as its head of its audit and risk committee, appeared to have “no clue” about how to be a chartered accountant.
Both Myeni and Kwinana deny any wrongdoing.
SAA has since taken to the skies once more after a relaunch in September 2021, and we can only hope that this time it won’t be business as usual at SAA and that the current custodians of the airline do have the best of intentions to turn around the SOE both ethically and from a business standpoint.
Meanwhile, one of the other major focus points to emerge from part one of the State Capture report is the role Bain and Company played in the hollowing out of the SA Revenue Service (SARS).
In yesterday’s Opinions of the Day, we brought you the views of Business Leadership SA’s (BLSA) CEO Busi Mavuso, who fully supports the recommendations made in the State Capture report including that those responsible face possible legal consequences.
But Bain whistle-blower Athol Williams says BLSA is defending Bain despite the Zondo inquiry findings. Mavuso herself has said that BLSA cleared Bain in September 2021 following an independent investigation by law firm Baker McKenzie and that those implicated in the rot at SARS, like former Bain managing partner in SA, Vittorio Massone, had left the US-based consulting firm and that Bain had paid back more than R200 million in consulting fees and interest.
Williams isn’t satisfied with BLSA’s decision to bring Bain back into the fold and writes that BLSA would have the public believe that Bain has been rehabilitated following the removal of Massone and a few governance “mistakes”.
“Only the most naïve would believe any senior executive operates in a vacuum without the involvement of others. The fact is Massone worked in a team of people in SA and globally, all of whom are still at Bain,” says Williams.
He doesn’t believe the Baker McKenzie investigation was truly independent either after the law firm also served as the legal adviser for Bain during the Nugent Commission inquiry in 2018.
On top of Williams’ questioning of Mavusa and BLSA, Daily Maverick has also faced criticism after it named Mavusa as a runner-up for its Businessperson of the Year award in its end of year awards for 2021.
Daily Maverick readers started to question Mavusa’s nomination for the award after the State Capture report was made public and the actions of Bain and Company were brought under the spotlight again. The news publication says that while it won’t rescind the award, it does “note that this was a controversial decision under the circumstances.”
In the currency market, the Rand opened softer this morning, trading at R15.69/$. The Rand traded weaker yesterday due to the strength of the Dollar as markets await the US CPI data out tomorrow. “Analysts are expecting inflation to have risen 7.0% YoY, which could see an even more hawkish Fed,” comments forex trading house TreasuryONE.
On the commodities front, gold is trading up at $1,807 with platinum and palladium firmer at $958 and $1,929 respectively. Brent is trading at $81.20 a barrel after the oil price “retreated slightly yesterday as demand concerns and increased output from Libya weighed on the price,” comments TreasuryONE.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
South Africans choose beef — Bolt reveals favourite food orders – My Broadband
Steinhoff shares jump as the Mattress Firm plans to go public in New York – BizNews
SA investors faced with Hobson’s choice over possible takeover of Tongaat Hulett by Zim’s Rudland family – Daily Maverick
Global Business
Google accuses Apple of using ‘peer pressure and bullying’ for profit – Business Insider
Take-Two to buy ‘FarmVille’ maker Zynga for $11 billion in largest gaming deal – Reuters
EU countries agree to lift South African travel ban – Bloomberg
Markets
Asian markets drop as era of cheap cash draws to a close – AFP
Asian stocks, dollar steady as investors focus on Fed policy – SABC
Oil resumes climb on renewed risk appetite, tight OPEC supply – Investing.com
Opinion/In-depth
How fast will the ANC fall, part two: Two approaches to business — cronyism or contempt – Daily Maverick
NPA investigating whether to open inquest into Chief Albert Luthuli’s death – News24
Best performing funds in 2021 – BizNews
Video
ANC to push EWC in 2022; mandatory vaccination policies upset tertiary ed; Zondo exposes SAA ‘shame’ – BizNews
From Meme Stocks to Crypto Dominance? – The Street
Consumer Electronics Show Gives Glimpse At Different Future – Newsy
Image: SAA plane. Source: Kevin Hackert/Flickr
