The South African Public Enterprises Minister, Lynne Brown, intervened in the impasse between Monwabisi Kalawe, the chief executive of SAA, and the board of SAA, to ensure "a fair process" to resolve the matter, she said. The impasse resulted from the suspension of Kalawe from his position by head of the board Dudu Myeni without giving a reason.
After enquiring why he had been suspended, Brown was told by Myeni that Kalawe had been reinstated, which wasn’t true.
In a briefing at Parliament on Wednesday, Brown said: "At this stage the CEO is not in his job. We have started a process now to make sure that there is a fair process around the CEO. It is at a sensitive stage," she said.
Brown made it clear that co-operation between the parties was the only way out of the impasse as she had no choice but to work with Myeni.
SAA is facing stiff challenges and Brown has recommended the appointment of a turnaround specialist to help SAA “live off its balance sheet” rather than state money. Brown has stated that the airline may still attract an equity partner.
