Cheryl Carolus and six other SAA board members resigned yesterday, plunging the state-vested airline into yet more turmoil.

Just yesterday we reported that Public Enterprises Minister, Malusi Gigaba, made a decision to cancel SAA’s annual general meeting this week, and requested from Parliament a two-month postponement of the tabling of SAA’s annual report.

The shock resignations mean that eight of SAA’s 14-member board have resigned – former JSE CEO Russel Loubser was the first, resigning with immediate effect on Wednesday.

Loubser said a lack of support from the Department of Public Enterprises – the airline’s shareholder – was behind his reasoning.

Carolus hinted that there could be more resignations too, and that it was “with a lot of careful thought and consideration” that she had taken this “extraordinary” step.

There has been a breakdown in the relationship with the shareholder. I thought we had agreed on a strategy. I’m finding it frustrating that this notion continues to exist that there is no strategic vision on the table at SAA.

After careful thought I also decided to resign, along with other members of the board. These are just the people who indicated to me that they will resign. I believe in the airline, I believe it is a critical national asset at the southern tip of the hemisphere. It will always be an airline that is tough to run.

We have come a long way in our communication with the government in understanding SAA and developing a 20-year plan for the airline. I am convinced it is the best plan we ever had and the best management team we’ve ever had.

The Department of Public Enterprises has been after a cash injection of up to R6 billion from the Treasury, and Carolus said the delay in the tabling of SAA’s financial statements at Parliament had been blamed on the board, which was not right.

I have a stamped receipt from the Department of Public Enterprises showing that the statements were received by them on August 31. All that was outstanding was a letter from (the) Treasury indicating that it would support SAA if the oil price continued along its forecasted path.

We would have received a qualified audit because of the uncertainty about government’s continued support.

Mayihlome Tshwete, spokesman for Mr Gigaba, said last night he found it “very interesting” that Ms Carolus said her relationship had broken down with the minister in the week when rumours of board changes surfaced.

Business Day reported that Carolus said “she, and other board members, had already indicated to Mr Gigaba that they were not available for another term because of the amount of time required to oversee the airline. The board had drawn up a transition plan for a new board, to ensure that their resignations did not hamper the airline.”

Tshwete was not impressed:

We would have liked the regular procedures to be followed. We would have appreciated sensitivity at a time when SAA is going through a tough time. I want to emphasise that you can’t resign through the media. In fact, it’s not a real resignation until the company secretary has been told and the secretary tells the minister — which has not happened yet.

[Source: BDLive]