John Lamola Appointed SAA CEO Amid Political Backlash
South Africa’s Cabinet has appointed John Lamola as Group CEO of South African Airways (SAA), a decision now mired in controversy over allegations of undue political interference. The appointment, announced on February 27, has sparked a political backlash from opposition parties and critics who claim that the selection process was heavily influenced by political patronage.
The Democratic Alliance (DA), a key member of the Government of National Unity (GNU) alongside the ruling African National Congress (ANC), has been vocal in its criticism. The DA contends that the appointment bypassed merit-based selection by sidelining the SAA board’s top candidate, Allan Kilavuka, Group CEO of Kenya Airways, despite Kilavuka being the highest-scoring contender. According to a recent News24 report, the DA alleges that Lamola’s selection is part of an ongoing pattern of ANC cadre deployment, undermining the independence of SAA’s board.
In response to these concerns, the DA has lodged a formal complaint with South Africa’s Public Protector. The complaint targets Deputy President Paul Mashatile and Transport Minister Barbara Creecy, accusing them of enabling the political interference that led to Lamola’s appointment. Critics argue that such interference has compromised the integrity of SAA’s selection process, potentially affecting the airline’s long-term strategic direction and operational performance.
Transport Minister Barbara Creecy, in a statement on February 27, confirmed that the top-ranked candidate was a non-South African CEO of an African airline, although she did not mention Kilavuka by name. She cited security clearance issues as one of the factors in questioning the appointment of a non-South African for the role. However, after extensive consultations with the SAA board and President Cyril Ramaphosa, both Kilavuka and Lamola were interviewed. The decision ultimately favored Lamola, whose tenure as interim CEO since May 2022 is credited with stabilizing SAA, achieving financial stability, and expanding the airline’s routes.
Creecy maintained that the selection process was entirely government-led and firmly denied any improper interference. She emphasized that the decision was based on performance, noting that under Lamola’s interim leadership, SAA reported its first profit since 2012. In the 2022/23 financial year, SAA recorded a profit of ZAR252 million (approximately USD13.7 million) while simultaneously expanding its routes, fleet, and workforce.
Despite the government and SAA board’s endorsement, the DA remains unconvinced. The party has raised further concerns about the role of SAA chairman Derek Hanekom, suggesting that he may have acted on behalf of the ANC, thereby compromising the board’s independence. In a bid to investigate these claims further, the DA has announced its intention to request the minutes from the board meeting.
The SAA board has stood firmly behind the appointment of John Lamola, asserting that he has the full support of both the board and the shareholder government. The board expressed confidence that Lamola’s proven leadership would bring stability and continuity to SAA’s governance and operations, setting the stage for the airline’s recovery and future growth.
As the controversy unfolds, industry observers and stakeholders alike are closely watching how these political dynamics might impact SAA’s strategic initiatives. The debate over the appointment not only raises questions about the influence of political considerations in corporate governance but also underscores the broader challenges facing state-owned enterprises in maintaining transparency and meritocracy.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com