Dudu Myeni survives another day at SAA

"Cabinet discussed the appointment of the board of South African Airways (SAA) and approved the following appointments," Cabinet said in a statement on Friday.

It listed the appointments as follows:

• Duduzile Cynthia Myeni (reappointment as chairperson);
• Mmakeaya Magoro Tryphosa Ramano (deputy chairperson and non-executive director);
• Bajabulile Swazi Tshabalala (non-executive director);
• Thandeka Nozipho Mgoduso (non-executive director);
• Nazmeera Moola (non-executive director);
• Akhter Hoosen Moosa (non-executive director);
• Gugu Sepamla (non-executive director);
• Siphile Buthelezi (non-executive director);
• Peter Holmes Maluleka (non-executive director);
• Mzimkulu Malunga (non-executive director);
• Martha Mbatha (non-executive director); and
• Peter Tshisevhe (non-executive director).

The formation of the board means Treasury will now release the embattled airline's R5bn guarantee, which will then allow it to file its much-delayed annual financial results for 2014/15 as well as the 2015/16 results. 

SAA has until September 15 to file these reports to Parliament.

The composition of the board is seen as a compromise between President Jacob Zuma and Finance Minister Pravin Gordhan.

Apparently, Gordhan had months ago presented a board that excluded Zuma's friend Myeni, which was rejected by the president.

While the Democratic Alliance said the inclusion of Myeni was a "massive political defeat" for Gordhan, Treasury apparently managed to include board members that could keep the controversial chairperson in check.

“We must do political homework to get credible people on board," Gordhan said in July. He said the new board and management team could include existing members and “new blood”.

Alf Lees, DA deputy shadow minister of finance, said on Thursday that Myeni's reappointment will "be bad for SAA, bad for our economy and bad for Pravin Gordhan".

"Myeni and her board have simply ignored Minister Gordhan and all warnings. They have, in our opinion, recklessly continued to run SAA into the ground and to the brink of liquidation."

"We see the appointment as irrational," Lees told Fin24 on Friday. "We need to look at what action we can take with regard to her appointment.

"It appears that some strong people have been appointed the board," he said. "However, it doesn't obviate our fears that Myeni will dominate the board, especially because of her close relationship with Zuma.

"The other board members will find themselves unable to perform their duties to sufficiently to save the airline."

The DA has called for the financially embattled airline to be placed into business rescue.

Myeni, chair of the Jacob Zuma Foundation, is a close friend of the president and has allegedly been sheltered by the top boss in a tenure that has seen the national carrier face countless challenges.

Myeni has been chair since 2009 and can only serve three three-year terms. That means she would likely not be able to serve beyond 2018.