Thread by @HeidiGiokos

BREAKING: SAA CEO resigns.
Vuyani Jarana renders his resignation. #eNCA #SAA

In Jarana’s 4 page resignation letter he sites the uncertainty about funding. Saying there are bureaucratic processes delaying decision making that’s needed for the turnaround strategy. #SAA #eNCA

Jarana says: “From 2018 to date we have had no less than three incidents in which the company was almost unable to pay salaries due to a lack of funding." #eNCA #SAA

Jarana: even though SAA got R5bn cash injection from gov in 2018/2019, most of it was used to pay creditors until March 2018
"We have not been able to obtain any further funding commitment from government making it difficult to focus on the execution of the strategy.” #eNCA #SAA

Jarana says SAA needs the approval of National Treasury and the Department of Public Enterprises to implement key decisions. “This is not a problem, however it takes away the agility needed for a company like SAA which is an "ICU case". #eNCA #SAA

#SAA Jarana says “Lines of accountability are becoming increasingly blurred about what operational decisions are in my domain, which are in the board's domain and which are in the minister's domain." #eNCA

Jarana also speaks about lack of trust.”Trust levels are very low impacting ways of working. Implementing a turnaround strategy for a company in crisis as #SAA, clarity of command structure, alignment of purpose and high levels of trust are critical elements of success." #eNCA

Remember during budget no new funds were allocated to #SAA but rather SAA guaranteed debt increased by R6.2 bn. Jarana mentions how no new funding has impacted SAA operations. Tito Mboweni even said he would prefer not to give SAA money. #eNCA

Jarana says much of SAA's ability to secure funding from lenders relies backing by the government. Which did not happen. #eNCA #SAA

#SAA Jarana: “we negotiated a specific dispensation with lenders to continue funding SAA going forward, this was predicated on SAA being mentioned in the Minister of Finance budget speech, which did not happen." #eNCA