Suspended South African Airways (SAA) CEO Monwabisi Kalawe has resigned, with immediate effect, as his relationship with the State-owned carrier had been “irretrievably broken down”.

The step was taken following arbitration proceedings between Kalawe and SAA, in the Labour Court, where two alleged protected disclosures were heard. This was referred to arbitration before advocate Nazeer Cassim on April 17.

Kalawe was suspended earlier this year and was summoned to a formal internal disciplinary inquiry, pending the finalisation of an investigation into serious allegations of misconduct. The resignation rendered further disciplinary proceedings unnecessary.

Cassim strongly urged SAA and Kalawe to mutually agree and resolve the terms of the fallen CEO’s departure to avoid the costs and damage associated with protracted legal proceedings and to protect the best interests of SAA as a public institution.

Kalawe would receive a payment from SAA in lieu of his contractual three months’ notice and outstanding leave pay up to the termination date.

In addition, he would receive an ex gratia payment equivalent to an additional three months’ notice in return for agreeing to give his notice of resignation with immediate effect.

The parties believed that this resolution avoided further expensive and protracted litigation, which was not in the interest of either party.

The settlement would enable SAA to focus its full attention on the operational challenges it was facing.