The South African Airways (SAA) Board is expected to issue a statement shortly on the resignation of the state-owned airline’s CEO, Vuyani Jarana.
He has reportedly resigned due to what he said was the lack of progress on a strategy to turn around the loss-making airline.
The SAA has not made a profit since 2011.
Jarana, who was appointed in the position in 2017, tendered his resignation letter to SAA board chairperson J.B Magwaza.
He cited uncertainty about funding and slow decision-making processes that were delaying the airline’s turnaround strategy. He is to work a three-month notice period until the end of August.
Jarana’s resignation comes just more than a week after state-owned power utility, Eskom’s CEO Phakamani Hadebe announced his resignation, citing health reasons for the decision
The Free Market Foundation (FMF) says it is concerning that the Chief Operating Officers of two state-owned entities have resigned in a short period of time. Executive Director at FMF, Leon Louw says there seems to be dissatisfaction among CEOs.
“We’ve had two major CEO’s resigning in South Africa in a month and there seems to be dissatisfaction amongst them with direct interference in their management of these enterprises and a failure to produce funding. I think the other factor the more fundamental one is very simple someone as astute as Mr Jarana would know that this can’t be done he’s wasting his time he’s been handed a poisoned chalice.,” says Louw.
Meanwhile the African National Congress (ANC) says it expects Public Enterprises Minister Pravin Gordhan to ensure the continued stability and operation of state-owned enterprises.
ANC spokesperson Pule Mabe says the governing party has deployed capable cadres to the executive, tasked with ensuring the effective functioning of a capable state.
“The capability would also be expressed through the kind of men and women that we have deployed. We have got the Ministry of Public Enterprises led by Minister Pravin Gordhan. It is our expectation that he is going to rise to attend to matters that might have an effect on the stability and continued operations of SAA. We cant really formulate an opinion at this stage.”