Ex-SAA Board Member Faces Fraud Allegations in Audit Deal

A former South African Airways (SAA) board member, Yakhe Kwinana, faces charges of fraud related to a ZAR59 million (USD3.3 million) auditing contract awarded during SAA’s 2011/12 financial year. The allegations stem from her failure to disclose past contractual ties between her firm, Kwinana and Associates, and auditing companies PricewaterhouseCoopers (PwC) and Nkonki Incorporated.

Kwinana, who also chaired SAA’s audit committee, appeared before the Palm Ridge Specialised Commercial Crimes Court on November 26. She was granted bail of ZAR20,000 (USD1,104), with the case postponed to January 29, 2025. Prosecutors allege her non-disclosure violated the Public Finance Management Act, compromising SAA’s procurement process and public accountability.

Separately, SAA reported its first profit since 2012, achieving ZAR252 million (USD13.9 million) for the 2022/23 financial year. The airline, now debt-free, plans to triple its fleet to 43 aircraft by 2028, focusing on sustainability and cautious expansion. Interim CEO John Lamola highlighted SAA’s conservative growth strategy, which includes leasing additional aircraft and evaluating strategic partnerships to support re-fleeting.

SAA’s current Airbus-dominated fleet includes A320s, A330s, and A340s, alongside damp-leased Boeing 737-800s. Discussions with local banks aim to secure funding for initial expansion phases, while a future strategic equity partner remains under consideration.

This marks a pivotal moment for SAA as it transitions from financial recovery to sustainable growth, while the fraud case underscores the challenges in rebuilding transparency and trust.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com