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SAA Referred to SIU for Investigation

February 3, 2020

The Presidency

3 February 2020

South African Airways (SAA) has been referred to the Special Investigating Unit (SIU) for investigation.

The presidency published Proclamation 2 in Government Gazette 42979.

The terms of reference of the investigation as outlined in the proclamation include to investigate any alleged serious maladministration in connection with the affairs of the SAA; improper or unlawful conduct by the officials or employees of the SAA; unlawful appropriation or expenditure of public money or property; unlawful, irregular or unapproved acquisitive act, transaction, measure or practice having a bearing upon state property; intentional or negligent loss of public money or damage to public property or unlawful or improper conduct.

Issues under the spotlight include the procurement of, or contracting for Airbus aircraft, maintenance, repair and operations services and legal services; maladministration in relation to travel rebate benefits for qualifying beneficiaries, payments made to vendors and implementation of the procurement policy and any irregular, improper or unlawful conduct.

Meanwhile, in Proclamation 3, the presidency has amended Proclamation 11 of 2018 that launched an investigation into Eskom and Transnet.

The period under investigation is extended until the date of publication and items to be investigated are added to the schedule such as cloud computing services, software licenses and support services and engineering and project management consulting services.

In Proclamation 4, the presidency has referred national treasury to the SIU in relation to the Integrated Financial Management System.

The period under the microscope extends from 1 January 2016 until the date of publication.

Issues to be investigated include payments that were not fair, competitive, transparent, equitable or cost-effective; contrary to applicable legislation, guidelines, policies and circulars and facilitated through the unlawful, irregular or improper intervention of employees or officials of treasury.