REPORT: SAA CEO SPLURGING MILLIONS ON EXEC SALARIES, FOREIGN CONSULTANTS

JOHANNESBURG – New allegations have emerged about how the South African Airways (SAA) CEO has been splurging millions on executives’ salaries and foreign consultants.

The Mail & Guardian is reporting the struggling airline’s recently appointed chief executive, Vuyani Jarana, has justified the increased expenditure to address a severe skills shortage.

The struggle airline just recently asked for another R5 billion bailout from Treasury.

Concerns have been raised that SAA sprawling expenses are worsening the airline already dire economic situation and some reports already saying that SAA have already used up the money the Treasury gave them just recently.

It was also alleged in the report that SAA is paying R25 million a month to the Deutsche Bank to deal  and analyse their finances and restructure their debt.

The airline is reportedly paying double in some cases to their new executives salaries and paying for expensive consultants for work that could be done locally.

In the 2016-2017 financial year SAA posted a R5.7 billion loss and have cut billions in revenue by cancelling several domestic and international routes, in effects to save costs.

SAA has responded to some of the allegations and said they are false and or inaccurate and will be responding later on Friday.

Photo Credit-ewn

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