The Department of Public Enterprises has withdrawn from the Leadership Consultative Forum that was established to facilitate employee engagement to develop a business and operating model for a restructured SAA.

In a statement last night, the department said it was withdrawing with immediate effect as the forum is not serving its intended purpose.

In terms of a leadership compact that was signed between the two parties, the forum was among others responsible for presenting an agreement to SAA’s Business Rescue Practitioners in support of the business rescue plan for the airline.

In the video below, SAA business rescuing plan to cost R10-billion: 

It was also tasked with making joint submissions to the BRPs on voluntary severance packages for SAA employees who are going to be retrenched and to ensure that SAA can resume flights as soon as possible.

The DPE says participants in the forum have breached the conditions of the compact by among others leaking confidential information,  It also issued public statements and supported SA Airlink’s resolution to adjourn the creditors meeting that was scheduled for last week.

The Department says their actions have put severance benefits for employees and the retention of one-thousand jobs at risk while putting SAA on a path towards possible liquidation.

In the video below, Embattled South African Airways future remains bleak: