/ 14 June 2001

Government ‘didn?t approve’ SAA chief?s $28m pay packet

SOUTH Africa’s Public Enterprises minister on Wednesday confirmed the former chief executive of the national airline was paid a $28-million salary, saying government never approved the amount.

Jeff Radebe said the chief of South Africa’s giant public utility Transnet, also did not have the authority to enter into an employment contract with Coleman Andrews, hired to turn the airline’s flagging fortunes around.

Andrews headed South African Airways for two years and left the airline in March, 14 months before his contract expired, a move widely criticised by the South African government.

Speaking in parliament, Radebe said the employment agreement entered into between Transnet managing director Saki Macozoma and Andrews was not in accordance with proper procedures.

This was because Macozoma did not have the permission from Transnet or SAA’s board to enter into the contract, Radebe said.

Despite Macozoma’s reported comment’s that the contract was approved at the “highest level”, Radebe said he — as government representative — had never been involved in discussions on remuneration. – AFP

ZA*BUSINESS:

SAA chief steps down early February 25, 2001

SAA in desperate need of vision – CEO August 24, 1998

New SAA chief’s right-wing background July 1, 1998

SAA’s top job goes to American July 1, 1998

OFFSITE:

Transnet chair pilloried by Radebe Business Day, June 14, 2001

The amazing Coleman Andrews story Business Day, May 31, 2001

SAA’s official web site

INVESTMENT INSIGHT

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