Johannesburg | Monday
SA President Thabo Mbeki is under pressure to resolve a public spat between two senior members of his ruling African National Congress (ANC) over a multi-million dollar pay package awarded to former airline boss Coleman Andrews.
Mbeki’s intervention is expected in the week-old dispute over the $28-million paid to Andrews, credited with turning around the finances of South African Airways (SAA), newspapers reported on Sunday.
The war of words between Public Enterprises Minister Jeff Radebe and Saki Macozoma, both senior ANC members, is the most serious public political battle to face the party since its unbanning in 1990.
“The key question is where Mbeki stands. No matter how much backing either man gets … the president will be the final arbiter,” the Johannesburg-based Sunday Times said in an editorial.
“It will now be up to Mbeki to navigate the ANC out of its worst leadership spat in recent history,” it said.
Radebe, in a session of parliament on Wednesday, accused Macozoma of “irregular business practices” in negotiating the pay package as managing director of SAA’s holding company Transnet, South Africa’s largest state-owned enterprise.
A US citizen, Andrews was appointed in 1998 to turn SAA — which faced serious financial difficulties at the time — into a profit-making business.
SAA had shown annual losses of R280-million ($35-million) when Andrews took up the post, but made a profit of R9.6-million the following year. In 2000 it reported a record-breaking profit of R349-million.
Andrews left the airline in March, 14 months before his contract expired, a move widely criticised by the South African government. Radebe said the cabinet was also incensed about the amount paid to Andrews for less than three years of service.
The Independent on Sunday, under the headline “SAA debacle leaves Mbeki with tough choices”, said: “He (Mbeki) is expected to enter the fray this week in what could prove to be one of his toughest challenges in reconciling the conflicting stances between two of his most senior lieutenants.”
Radebe accused Macozoma of circumventing normal business procedures in the negotiation of Andrews’ contract by not informing the Transnet board.
However, Macozoma told the Sunday Times that he had warned Mbeki of the danger of confidential information about the contract being leaked.
“I explained to him (Mbeki) that there were huge battles at Transnet and it was not possible for me to state the amount that was being negotiated. He understood why I had to negotiate directly with Coleman,” the Sunday Times quoted Macozoma as saying.
He also said he had argued that Andrews was being paid an “internationally competitive salary.”
But government representative Joel Netshitenzhe questioned whether the details of Andrews’ salary were discussed with the president.
“There may have been discussions on how to prevent negotiations on the contract being scuttled by premature publicity. But I don’t think he (Macozoma) sought and got permission altogether to bypass the board and its structures,” Netshitenzhe told the Sunday Times. – AFP
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