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BusinessLive reports that SA Airways (SAA) CEO Vuyani Jarana has become the second head of a major state-owned enterprise to jump ship in as many weeks.
Meantime, the government is struggling to keep the companies operational. Last week Jarana resigned from SAA, following in the footsteps of Eskom CEO Phakamani Hadebe, who announced his resignation on 24 May. Jarana cited slow decision-making and red tape at the airline, as well as blurred lines of accountability, for his departure. Hadebe cited his poor health as a reason for his July departure from Eskom. According to Jarana’s resignation letter dated 29 May, the demand to constantly have decisions run past the department of public enterprises and the Treasury "systematically undermined" his efforts to pursue a turnaround strategy and to "nimbly respond to the challenges facing the airline". Jarana has gone through four ministers since joining SAA. "One of the areas of concern is speed of decision-making: it is impossible to succeed in the turnaround with the current level of bureaucracy we have to go through to implement the strategy," Jarana wrote. He added that trust levels were very low within the airline, and despite assurances from the state that funding would be made available, the airline has recently struggled to pay salaries. According to Jarana, he was no longer convinced the airline’s turnaround strategy would succeed. On Sunday, SAA said its board had accepted Jarana’s resignation. He will leave at the end of August.
- Read the full original of Karl Gernetzky’s report on this story at BusinessLive
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