Treasury merely catalyzed into action a decision that has been kicked down the road for many yrs. Basically it's about; 1. Purpose, 2. Strategy + Structure and 3. Governance. Ideological gridlock rather than pragmatism in the Alliance derailed (1).
I warned, in Parliament in Sept 2017, than (1) must be decided. Ignored🙇♂️. Instead, DPE threw money at the problem for both SAA and SAX. Unforgivable for SAX. (An entity that has no rationalè to exist). Egos drove the decision to plow more money into it
after it was grounded by the CAA in 1st half of 2018.The thing has been a serial loss maker for yrs. Our strategy to fold it into SAA in line with the SAA restructuring was arrogantly ignored. More than R1bn was thrown in. This was wasteful expenditure.
Now it's being liquidated. IRO SAA, DPE again undermined the restructuring process. Jarana then resigned. They must take full accountability for the current state of SAA. It's amazing that we still dont have a strategy from the BRP after 3months. 🙆♂️
And we pay huge $s for something that was figured out within weeks. The BRP process will NOT yield anything that is conceptually superior. We have the knowledge and experience. They don't. When Purpose is unclear, wasteful expenditure follows. Period.
DPE approved the SAA turnaround strategy as well as the appointment of Jarana. They then systematically undermined the execution by intrusion in executive decision making.They must be accountable for wasteful expenditure incurred as a result.
DPE was never committed to the execution of a strategy they approved. Its rationale was the introduction of a commercial culture and practice into SAA. Jarana came on that basis. But impediments were thrown in his efforts. Preliminary discussions were
undertaken with Ethiopian Airline to join as a partner. They insisted on one condition: Government interference and involvement in decision making Must be expressly made. In their case there is a Covenant that goes back to around 1983 that
guarantees unfettered authority in the executives of the ET airlines to operational independence. Without a similar commitment from the SA government, they are not interested. What then? DPE must continue to run the airline as part of its department.🙆♂️🙆♂️
