Today's Labour News

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saa thumb medium95 76Business Times reports that consultants working in the first five months of the business rescue process in respect of state-owned airline SA Airways (SAA) cost the taxpayer almost R170m.  

Documents filed by the airline's joint business rescue practitioners (BRPs), Les Matuson and Siviwe Dongwana, with parliament's standing committee on public accounts show that between January, when SAA's business rescue process started, and May 2020 more than R169m was paid to six consulting firms.  Yet, appearing alongside the BRPs in parliament in June, public enterprises minister Pravin Gordhan said that despite the business rescue process costing the public purse millions, there was little value to show for it.  At the time, Dongwana and Matuson said their use of the consultants was not outside the norm given the size and complexity of the first state-owned enterprise to be placed in business rescue.  The details of the payments came last week as information of years of corruption and malfeasance were laid bare at the judicial inquiry into allegations of state capture chaired by deputy chief justice Raymond Zondo.  And earlier in the week the National Union of Metalworkers of SA (Numsa) called out the Department of Public Enterprises after it learnt that Adam Voss, the departed CEO of SAA Technical (SAAT), had paid himself an R830,000 bonus on the eve of his departure from the company last month.  At the airline, engineers and other staff were recently made to take pay cuts of 75% due to the Covid-related shutdown of air travel.

  • Read the full original of the report in the above regard by Sabelo Skiti at BusinessLive (paywall access only)


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