Question NW130 to the Minister of Planning, Monitoring and Evaluation
14 August 2024 - NW130
Maotwe, Ms OMC to ask the Minister of Planning, Monitoring and Evaluation
(1) With reference to the advertisement of executive roles at SA Airways (SAA) by the former Minister of Public Enterprises, Mr P J Gordhan, at the end of the sixth administration, what is the validity of that process considering that the appointment of the SAA board by Cabinet was on an interim basis; (2) when does she intend appointing a permanent SAA board; (3) what measures have been put in place to facilitate and expedite the appointment of a permanent and competent board instead of the current interim one?
Reply:
(1) According to South African Airway’s (SAA) Memorandum of Incorporation, the SAA Board is responsible for the recruitment and selection of SAA executives, particularly the Chief Executive Officer and Chief Financial Officer, not the Executive Authority. This recruitment process remains valid even though the SAA Board was appointed on an interim basis. The Companies Act 71 of 2008 does not distinguish between interim and permanent directors. Section 1 of the Companies Act defines a ‘director’ as a member of the board of a company, as contemplated in section 66, or an alternate director of a company, and includes any person, regardless of their title.
(2) The term of office for the current Board expires on 31 December 2024. The process of appointing a permanent Board will be completed before the expiration of the current Board’s term.
(3) Stabilizing the boards of State-Owned Companies (SOCs) within the department's portfolio is one of the top priorities for the 7th Administration. The appointment of new permanent boards, including that of SAA, will ensure leadership stability and effective governance.