As a shareholder....... the department believes that one of the critical areas for a restructured SAA to get off the ground is to reduce the high-cost structure caused by onerous contracts and high salaries and perks implemented under Saapa’s RA.”
This is precisely what Jarana was doing. Bringing down operating and fixed costs across the board especially pilot packages. But DPE openly blocked his path and undermined him. A suspicion of prejudice cannot be dismissed.
It was industry knowledge that SAA operating cost structure was uncompetitive. No rocket science there. This was why a cost optimisation strategy was quick to articulate and roll-out speedily. Davis, a restructuring expert, was roped in even prior to
the appointment of Jarana. The mystery is why was Jarana Not given the space and support to do what was necessary? Both Treasury and DPE constructively impeded his efforts. Why???
His 1st target was pilots employment benefits and operating costs.
It boggles the mind that DPE can now, with a straight face, support the BRP actions. Their moment of Damascus must have been profound and traumatizing. This is the policy incoherence that has hindered development and growth in SA.
Transforming SAA and restructuring it is a fairly easy task. Benchmarks are plentiful for guidance. What has been missing is clarity on Purpose of the airline. That has not changed. Without it, securing an equity partner is wishful thinking.
I challenged clarity on the issue of purpose in 2017 here:
google.com/amp/s/www.busi…
Incredibly we still hear of pronouncements by DPE of a magical thing called a developmental airline with commercial mandate. 🙇‍♂️🙇‍♂️🙇‍♂️🙇‍♂️
Good heavens what monstrosity is this?

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More from @MotsohiThabang

16 Dec
The ANC predates apartheid and can't continue its existence without a major org review to reposition it optimally in contemporary and diverse South Africa.
The ANC in its present state and form seems to be trapped by its own hubris.
Here are some key drivers for urgent redesign:
1. Criteria for nomination and selection of representatives must be reset to deliver ethical and capable people
2. Org processes to germinate and formulate policy positions need review to optimise rationality
3. Reset of moral framework and accountability is critical and urgent
4. Procedures for discipline and sanction must be fool proof
The swathe of looting and criminality in the procurement of PPE equipment finally tipped the moral fragility within the ANC
Read 7 tweets
23 Nov
Common sense has always guided the development and survival of humanity. It is in our DNA. It sort of comes naturally. But there is one condition for it to always serve us better. We must have a high sense of awareness and consciousness to benefit
from it. But this comes with continuous learning and more wisdom.
Consider then our current reality.
- Our sovereign debt is about R4 Trillion
- Debt servicing costs run at about R225 billion.
- Our Tax Income has been declining significantly
- Because our Tax base has been declining progressively as investment declined
- Then came Covid-19. Millions lost their jobs and prospects of recovery are dim.
- The Recovery Plan announced by the President will not have immediate impact. This is Fact.
Read 6 tweets
21 Nov
The death rates from Covid-19 in the USA should be a lesson to all of us that we need to take responsibility visibility and wear a mask plus maintain a safe distance. I am very apprehensive about the coming Xmas family gatherings.
As a grandfather we have kept to this regime. I ask other grandparents to plse insist on this regime. Hopefully the vaccine will be available for us in Jan. Just 3 months away. The state communication system at all levels must aggressively spread the message.
The private sector should spend their funds to spread the message. The spread in specific areas in the EC and WC is a result of recklessness. Students have played a role in spreading the virus. Parties can continue but after the vaccine has reached the
Read 4 tweets
15 Nov
The ANC-Led government has for decades enthusisstically promised a "Better Life for All". But they failed to create conditions for everyone to develop a pathway to success and wealth building. They did so only for ANC cadres through BEE and looting.
In the process, the vital local government sphere has collapsed. Health and basic education systems have also collapsed. The SOEs have collapsed. Good heavens, what have the ANC done successfully? Plse don't quote the welfare support system.
It is unsustainable because the revenue stream required to support it is declining irreversibly. Ask SARS.
The answer is simple. The ANC has failed to create conditions for job creation by the private sector. Yes they succeeded to create protected labour jobs
Read 4 tweets
11 Nov
I hope and pray that the revelations of egregious looting of state resources that have been made at the Zondo Commission will make us understand that no nation has ever grown wealth for all and flourished without rooting out corruption comprehensively.
Many of these acts of theft date back to more than a decade because the criminal justice system was systematically weakened and undermined. It is therefore not surprising that our GDP per capita rates have been in decline for so long. This should worry you.
A more worrying development is that this has now morphed into a culture since the ANC gained political power. It all started with the original sin of the arms deal.
To root out this practice at all levels of government will require more than the resources
Read 6 tweets
9 Nov
You must Not allow yourselves to be surprised and deceived by these revelations. This is the norm. It has always been the norm that has morphed into a toxic culture that has proved difficult to control. Read AGSA Reports on munics dailymaverick.co.za/article/2020-1…
The ANC has always struggled with campaign funds. The arms deal was driven by this pressure. Since then other options had to be pursued. SOEs presented the best option. But they could only deliver if their boards and executive leadership were compliant.
Many did and deployed comrades delivered on pain of losing their over-paid jobs and privileges. It continues to this day. Perhaps government funding of parties may provide basis for change. But not until SOE governance framework is changed.
Read 4 tweets

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