The State Capture Commission's report, released by President Cyril Ramaphosa, has found that Dudu Myeni and Yakhe Kwinana played a significant role in creating a toxic environment at South African Airways (SAA). The 874-page report details the extent of corruption and mismanagement during their tenure. Myeni served as SAA chairperson from 2012 to 2017, while Kwinana was a board member at SAA and its subsidiary, SAA Technical. Their actions, according to the report, were in direct contravention to the policies of the airline.
The report highlights Myeni's term as the "antithesis of accountability," with her consistently flouting SAA's policies. Under her leadership, SAA declined into an entity marred by corruption and fraud. Despite this, Myeni was retained as chairperson due to the personal preferences of former President Jacob Zuma. The report notes that it is inexplicable how Zuma ensured Myeni's continued tenure despite the numerous red flags and decline in SAA's performance.
The commission found that Myeni and Kwinana infringed on the rights of SAA's executive management through an illegal process of security vetting. Several witnesses testified that the vetting process was used to intimidate and purge executives who did not align with Myeni and Kwinana's agenda. The State Security Agency (SSA) official tasked with overseeing the project, Nokunqoba Dlamini, revealed that Myeni claimed the vetting was an initiative to combat corruption.
The report also uncovered irregularities in SAA's procurement contracts, including a R15-billion loan to consolidate debt and a catering contract for lounge services. Myeni was found to have been involved in these contracts, despite not having the authority to do so. The commission recommended that the National Prosecuting Authority consider these cases for prosecution. Additionally, the report raised concerns about a R50-million cancellation fee imposed on SAA by BNP Capital after it withdrew from a funding deal.
The Pembroke transaction, which involved the acquisition of aircraft for SAA in 2013, was also scrutinized in the report. Myeni was found to have misled then public enterprises minister Malusi Gigaba over the board's decision on the number of aircraft to be procured. The board had resolved to acquire two Airbuses, but Myeni represented the decision as being for 10 aircraft. This resulted in delays and additional costs for SAA.
Another contract that drew the commission's attention was for catering services at SAA lounges. Myeni ordered the reversal of a tender awarded to LSG Sky Chefs, citing the preference for a local company, Air Chefs, which was chaired by Kwinana. However, Air Chefs had underperformed and failed to submit all necessary documentation. The report criticized Myeni's interference in the procurement process.
The swift release of the report by President Ramaphosa has been hailed as a step towards transparency. The report is the first of a trilogy, with the next expected to be submitted at the end of January and the last at the end of February. The commission's findings have significant implications for those involved, with recommendations for prosecution and further investigation.
Key points
- Former SAA chairperson Dudu Myeni and board member Yakhe Kwinana fuelled a culture of bullying, fear, and purging at SAA.
- The State Capture Commission's report details extensive corruption and mismanagement during Myeni's tenure at SAA.
- President Cyril Ramaphosa has released the report, marking a step towards transparency in addressing state capture.
