South Africa's independent corruption watchdog, the Special Investigating Unit (SIU), announced it had formally added South African Airways (SA, Johannesburg O.R. Tambo) to a list of state institutions to be investigated on allegations of "serious maladministration, corruption, and unlawful conduct". No further details were disclosed.
In a statement on March 28, the SIU said President Cyril Ramaphosa had signed amendments to proclamations authorising the unit to expand the scope of its investigations into SAA with the aim of recovering financial losses suffered by the state.
The amendment of Proclamation No. R.206 of 2024 substitutes the heading and first paragraph of the original proclamation to "formally add South African Airways as a state institution which will be subjected to an investigation of allegations of serious maladministration, corruption, and unlawful conduct in the affairs of these state institutions," the SIU said.
ch-aviation has reached out to SAA and the SIU for comment.
In March 2024, South Africa's public enterprises parliamentary portfolio committee asked the SIU to investigate the failed sale of 51% of SAA to the Takatso Consortium. This followed complaints from former Department of Public Enterprises director-general Kgathatso Thlakudi, who alleged wrongdoing in the Takatso deal and questioned the valuation of the national airline.
In 2021, ch-aviation reported that the SIU was investigating 84 SAA contracts and 44 of its aircraft leases, having unearthed contractual irregularities such as inflated pricing; fronting; conflicts of interest on the part of SAA staff; fictitious vendors, work orders, and bank accounts; over-payments; non-delivery; and non-performance.
Among the most high-profile cases was when the late SAA chairwoman Dudu Myeni tried to involve a third-party leasing company in a 2015 deal with Airbus, blocked by then finance minister Nhlanhla Nene, which led to his controversial dismissal, known as "Nene Gate," which was also examined by the Zondo Commission on State Capture.
Other state-owned entities currently under investigation by the SIU include the South African Broadcasting Corporation, power provider Eskom, fuel provider PetroSA, national rail company Transnet, the Department of Human Settlements, diamond mining company Alexkor, and the South African Council for Educators.