Matshela Seshibe, the CEO of Air Chefs, has proposed a mutual separation deal with the state entity after being found guilty in an internal disciplinary process. Seshibe was found guilty on four of six allegations by retired labour court and labour appeal court judge president Basheer Waglay. The allegations relate to irregular expenditure and breaches of the Public Finance Management Act. Seshibe's proposal could mark the end of his contract, which has two years remaining.
The guilty findings relate to Seshibe's approval of salary increases for three employees without board approval. The increases were given to Zandile Mzilikazi, Mphume Spayile, and Gloria Maile. Seshibe stated that the increases arose from a discretionary internal benchmarking exercise. However, the internal disciplinary report found that his conduct resulted in irregular expenditure and breaches of company policy. Seshibe was also found guilty of failing to formally disclose a close professional relationship with Mzilikazi.
Seshibe wrote to Air Chefs board chair Mongezi India and SAA board chair Sedzani Mudau to consider a mutual separation by agreement. He emphasized that his proposal does not constitute a resignation or unilateral termination of his employment. Seshibe stated that he is not resigning from his position and that his proposal is not intended to circumvent the disciplinary process. He highlighted the huge challenges facing Air Chefs and SAA, including operational, financial, and organisational demands.
Seshibe was placed on special leave in August while acting as SAA group CEO. His acting contract was terminated at the end of August. He was appointed as Air Chefs CEO in October 2024 on a five-year contract. Seshibe is also a board member of President Cyril Ramaphosa's foundation. The disciplinary findings did not include allegations of a romantic relationship between Seshibe and Mzilikazi, with Seshibe emphasizing that their relationship was only professional.
The internal disciplinary report found that Seshibe's approval of ad hoc remuneration adjustments for Mzilikazi and Spayile resulted in irregular expenditure. Mzilikazi's salary was adjusted by about 18.4% last year, while Spayile received an increase of 28.57% in excess of the prescribed policy threshold. Seshibe was also found to have breached company policy by not getting board approval for the adjustments.
Seshibe's proposal for a mutual separation deal is currently being considered by the Air Chefs and SAA boards. If accepted, it would bring an end to his contract. Seshibe's letter to the judge president stated that he explored the possibility of a mutually agreed separation on terms that are fair, reasonable, and acceptable to both parties. The disciplinary process has afforded Seshibe and Air Chefs the opportunity to submit written representations in aggravation and mitigation of sanction.
The outcome of Seshibe's proposal remains to be seen. His employment situation will be closely watched by stakeholders in the aviation industry. Air Chefs is the in-flight catering arm of SAA, and Seshibe's leadership has been under scrutiny following the guilty findings. The company faces huge challenges, and the attention of the leadership is required to address these demands.
Key points
- Air Chefs CEO Matshela Seshibe proposes mutual separation deal after being found guilty in internal disciplinary process
- Seshibe was found guilty on four of six allegations related to irregular expenditure and breaches of the Public Finance Management Act
- The proposal could mark the end of Seshibe's contract, which has two years remaining
