Cape Town | Friday
SOUTH African President Thabo Mbeki said on Thursday a government minister will meet with the main shareholder in South African Airways to settle a row, which analysts see as a threat to the country’s privatization programme.
Minister of Public Enterprises Jeff Radebe will meet on Saturday with the board of Transnet, a state transport utility and majority shareholder in the airline, to try to end the dispute.
“I would like to express my deep concern at the unseemly squabble that has broken out on issues concerning South African Airways. This matter has to be brought to a close as soon as possible,” Mbeki said in a routine address to parliament.
Mbeki made no comment on the issues at the centre of the row — mainly between Radebe and former Transnet boss Saki Macozoma — which involved a R232m ($28.9-million) salary and settlement package paid to Coleman Andrews between June 1998 and April 2001, when the American was at the helm of the airline.
Radebe had told parliament last week that Macozoma negotiated the contract with Andrews without the airline’s authority.
Macozoma has said that Mbeki was aware of details of the deal made with Andrews.
South African Airways is one of four major corporations earmarked for partial privatisation in line with a programme to reduce the state’s shareholding in key utilities.
The government already has sold a 20% stake in the airline to Swissair Group, and an initial public offering is scheduled for next year.
But analysts said that confidence in the airline and the privatisation process may have been dented by the row between Radebe and Macozoma over the amount paid to Andrews, who is widely credited with turning around the loss-making airline.
Mbeki avoided any detailed comment on the package or Macozoma’s performance, telling legislators: “In terms of our system of corporate governance, the Minister (of Public Enterprises) represents the shareholder in our relations with Transnet. The government will await the outcome of this meeting before making any further statements on this matter.” – Reuters
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FEATURES:
Mbeki upset over squabbles June 22, 2001