Dudu Myeni’s Contract Is legal- Malusi Gigaba

CAPE TOWN. Minister of public enterprises Malusi Gigaba addresses media pre budget briefing 14 May 2013. Pic:Trevor Samson/ Business Day

South African Airways chairperson Dudu Myeni will remain at the airline until the end of the year.

Despite Dudu Myeni’s contract ending in August, she will continue being the chairperson of SAA until November. This decision was confirmed by Malusi Gigaba, who informed parliament’s standing committee on finance that Myeni’s extended contract was legal.

SAA was recently granted a R10 billion bailout by government. This comes in the wake of reports that several banks would no longer extend loans to the embattled airline because of Myeni’s tenure there.

City Press reported about a month ago that Myeni said she would stay at the airline until ‘ubaba’ (President Jacob Zuma) leaves office.

According to the laws set out by the Companies and Intellectual Property Commission (CIPC), her continued occupancy is believed to be illegal.

Yunus Carrim, chair of the standing committee of finance, made a statement on Friday regarding the issue.

“The minister argues that it is legal to extend Ms Myeni’s term on the basis of Section 13.4.6 of the SAA Memorandum of Incorporation, which he says is in line with the Companies Act.”

Carrim received a letter from Gigaba that he planned on forwarding to parliamentary Advocate Frank Jenkins

The committee was concerned about the minister extending Myeni’s contract, but Gigaba argued she has not yet served three full terms of office.

Gigaba’s argument contradicts his previous decision, where he promised all banks who were angered by loans being granted to SAA that Myeni would leave when her contract expired.

Myeni’s contract was extended by Treasury, she was requested to remain in her position until the Annual General Meeting, which is scheduled for November 3.

DA MP Alf Lees, also a committee member, has not yet received the letter from Gigaba, but he is appalled that the minister’s legal advice may be able to overrule the CIPC and the finance committee.

Gigaba was given a week to legally motivate her extension.

Advocate Jenkins will consider the legal arguments, following which the committee will make a decision regarding Gigaba’s response in the committee meeting on October 5.

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