A scandal has surfaced in South Africa over the R232.2 million ($29 million) remuneration package of South African Airways' (SAA) former chief executive Coleman Andrews and allegations of corporate mismanagement.
It follows revelations about Andrews' remuneration and R243.1 million paid to consultants he appointed, including R208.9 million to US consultants Bain & Company and R118 million paid to nine expatriates appointed to key SAA positions.
Andrews' contract with SAA was cut short in February. His earnings during his two-year tenure included a salary and bonus of R99.9 million, payment in lieu of shares of R58.6 million and a termination package of R78.8 million. The minister responsible for SAA, Jeff Radebe, and the man who hired Andrews in 1998, Saki Macozoma, former managing director of SAA's parent company Transnet, are embroiled in a public dispute over who is to blame for the embarrassment. Macozoma resigned from Transnet in January and is now deputy chairman of Stannic, one of South Africa's leading banks.
During a debate in parliament, opposition parties called for the immediate sacking of the entire Transnet board. Macozoma has accused Radebe of interfering in SAA and Transnet. Radebe, in a detailed report to parliament, heaped blame on Macozoma, saying there had been systematic erosion of corporate governance at SAA since 1998.
Source: Flight International
