'Jarana was allowed to do at SAA what a lot of CEOs didn't get to do'
South African Airways (SAA) chief executive officer (CEO) Vuyani Jarana tendered his resignation over the weekend.
Jarana has become the second CEO of a major state-owned entity to resign after Eskom CEO Phakamani Hadebe announced his resignation a few weeks ago.
In his resignation, Jarana described how his strategy to turnaround the national carrier was systematically undermined.
Questions have been asked as to what is happening at this particular state-owned entity?
To explain what is happening at the SOE, Eusebius McKaiser chats to Mail & Guardian investigative reporter Sabelo Sikiti.
We are still trying to get to grips with the actual reasons as to why Jarana resigned, and part of what he says in his resignation letter is that there was no shareholder support. Jarana says: 'I have told them that this is how much money the turnaround strategy needs, they have advanced to me thus far about R3.5 bn, I was expecting to get these payments in tranches so that when we get to 2021, the airline can sustain itself.'Sabelo Sikiti, Investigative reporter - Mail & Guardian
Sikiti says Jarana's statement is broad because the turnaround strategy is not something that he adopted himself as it went through all the stages and was even passed in Parliament.
Why would the government commit to something that they are now seemingly unable to fund? That is one aspect. Jarana has been there since November 2017, and this is the first time he spoke about any sort of challenges at SAA.Sabelo Sikiti, Investigative reporter - Mail & Guardian
Jarana has probably been given the most amount of leeway that any CEO at SAA has had in quite a long time, Sikiti notes.
Jarana was allowed to do at SAA what a lot of CEOs at the company didn't get to do if you look at the millions that he spent bringing in consultants before he even started in that office. The board created a position for chief reorganisation officer, a person who will look after the day-to-day running from an aviation point of view so that Jarana can focus on the financial and business development aspects. That wasn't done for any other CEO.Sabelo Sikiti, Investigative reporter - Mail & Guardian
Furthermore, Jarana spent some time with Bain & Company before taking office, being taken through on what the task of being SAA CEO would entail, Sikiti adds.
On top of that, Jarana brought four more consultants from the UK and that was another expensive exercise. He was also allowed to bring in six or seven executives into his office. As a result of all of this, SAA is sitting at the CCMA with its former chief operations officer and former chief financial officer, people he got rid of and bring in his own people. So when you talk about support what do you mean?Sabelo Sikiti, Investigative reporter - Mail & Guardian
He says the SAA story goes beyond just business.
The story is one of the patronage networks, one of procurement spent. Every time a new CEO comes in at SAA, you will get a lot of people that have been there telling us that this CEO is trying to bring in a particular company to do debt restructuring and so forth. That is the story of Transnet, and that is the story at Eskom.Sabelo Sikiti, Investigative reporter - Mail & Guardian
Listen below to the full explainer of Jarana's resignation and what is happening at the parastatal:
This article first appeared on 702 : 'Jarana was allowed to do at SAA what a lot of CEOs didn't get to do'
The Deputy Minister of Mineral Resources died in a car crash on Friday. The details surrounding the crash remain unclear.Read More
A Facebook post has put the Wykeham Collegiate private school for girls in Pietermaritzburg in the limelight.Read More
The fired Old Mutual CEO has responded to board chair Trevor Manuel's claims made in a media briefing on Friday.Read More
Residents have been urged to adapt accordingly as the Integrated Vaal River System is also negatively impacted by the decline.Read More
The MDC president says this is not the time to score 'cheap' political points and that due regard must be given to the statesmen.Read More
JSE CEO Nicky Newton-King received a memorandum from demonstrators on Friday and says women's demands will not fall on deaf ears.Read More
Activist Nolwazi Tusini gives her critique of the #SandtonShutdown and the conversation around gender-based violence.Read More
Police Minister says the country needs to move away form moral degeneration and put families first.Read More
ZimFacts head Cris Chinaka weighs in on the impact of the former Zimbabwean president on the country and its people.Read More
MMC Michael Sun says the municipality has to comply with the rules and regulations when giving private operators such a tender.Read More
If the SANDF deployment is extended on the Cape Flats, it must be done in conjunction with better policing, an analyst explains.Read More
Khayelitsha green entrepreneur Siyabulela Sokomani has brought his 'moving forest' to Sanlam Cape Town Marathon for a good cause.Read More
Minister Patricia de Lille has invited the public to pay their final respects to Williams at the Newlands Stadium in Cape Town.Read More
Hundreds of women gathered outside the JSE in Sandton as early as 3am this morning to demand support from the private sector.Read More
Old Mutual is not backing down in its fight with fired CEO Peter Moyo. Ray White interviews EWN’s Nthakoana Ngatane.Read More
Olivia Jasriel says they were informed on Thursday that Hewitt will be released n the 23 September 2019.Read More
Businesswoman Khanyi Chaba says she spoke out about the abuse of her late friend Dr Thandi Ndlovu in order to honour her legacy.Read More
Kgabele Memela says because of the initiative he received an internship at Unlockd.Read More
Civic pressure group Stop CoCT says it found discrepancies in the tariff increases implemented by the City.Read More
Centre for Child Law project manager Zita Hansungule says children still have the ability to be rehabilitated and reintegrated.Read More