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The State Capture Commission of Inquiry has revealed more interesting information showing why South African Airways Technical (SAAT) is in dire financial straits. The recent testimony by Mr Vuyisile Ndzeku, director at JM Aviation has re-enforced our resolve to continue with our legal application for the entire board of SAAT to be declared delinquent, and for executives at SAAT to face criminal charges.

Recently the State Capture Commission heard testimony from Mr Ndzeku, a man, who in our view exposed himself to be a person of questionable character based on his dismal performance when testifying under oath at the Zondo Commission. Mr Ndzeku and Adv Nontsasa Memela (the former head of procurement at SAAT) met in 2015. Soon afterwards, Adv Memela introduced Mr Ndzeku to her mother. A few months later, Mr Ndzeku paid R2.5 million to Adv Memela’s mother for the purchase of land in Mbizana. No title deed was exchanged. In fact, at the time, Mr Ndzeku was unsure who actually owned the land he allegedly purchased. The sale agreement 

stated that the money of R2.5 million would be used by Adv Memela to purchase a property in Bedfordview. Mr Ndzeku states that he did not know this because he failed to read the short (4 to 6 pages) sale agreement properly before he signed it.

Interestingly, during 2015, Mr Ndzeku received a payment of R2.5m from Swissport. He states that he did not know why this money was paid to him. Mr Ndzeku first stated that he asked Swissport for clarity on the payment. He later changed his evidence and stated that he did not notice the money had been paid into his personal bank account, until the Commission pointed it out to him a few years later. 

At that time, Swissport was awarded a Ground Handling contract from SAAT worth R1.5 billion. Mr Ndzeku was a director and shareholder of both JM Aviation and Swissport.

In short, R2.5 million was paid by Mr Ndzeku to Adv Memela, using her mother as a conduit. The only reasonable inference is that the money was paid to Adv Memela in exchange for her role in the awarding of the ground handling contract, by SAAT, to Swissport. During 2015 and 2016, Adv Memela was the head of procurement at SAAT. She was responsible for ensuring that all supply chain policies were scrupulously followed. She was clearly not interested in doing so but focussed her attention elsewhere.

Ndzeku’s version of events was exposed as a lie at the commission by evidence leader advocate Kate Hofmeyr. This was after it was revealed that the sale agreement for the land purportedly signed four years ago, only came into existence last year. The police stamp on the affidavit that was attached to the agreement, was also allegedly forged. 

Following pressure by NUMSA and SACCA, in 2017 Adv Memela was called by SAA to an internal disciplinary hearing, chaired by a prominent Senior Counsel, and she was dismissed. At her hearing, she was represented by the trade union the NTM. The chairperson made a number of scathing comments about her competence and the manner in which she executed her duties. Among other things, the chairperson found that she acted in breach of her fiduciary duties when she assisted SAAT in disposing of 12 Ground Power Units to JM Aviation at a price well below their true value, leading to losses to SAAT in excess of R5m. The chairperson stated that Adv Memela, as a custodian of supply chain policies, did not familiarize herself with the policies and did not care for their proper execution.

Adv Memela’s dismissal was later reversed by the CCMA in a shocking Arbitration award, which ignored the relevant evidence. SAAT’s attorney who represented the Airline at arbitration advised the entity that the award should be reviewed, but SAAT refused to take the award on review. Instead, the current Chairperson of the SAA Board who is also a member of the SAAT board, Ms Thandeka Mgoduso and Mr Adam Voss (the current Chief Executive Officer) of SAAT approved of a financial settlement with Adv Memela. SAAT has no difficulty with using litigation as a tool to frustrate NUMSA and SACCA members, but when it comes to fighting corruption it suddenly becomes incredibly shy.

The contract for the sale of 12 Ground Power Units is one of many contracts found by the forensic auditors, Open Waters, to be fraudulent and irregular and the same names, such as Adv Memela keep cropping up. We believe that the current boards of SAA and SAAT continue to shield the corrupt and we are calling for an independent investigation into the reasons why a financial settlement was reached with Adv Memela when there was no cause to do so. Ms Thandeka Moguduso and Mr Adam Voss must be directly investigated. The only inference of the financial settlement with Adv. Memela is that SAAT does not want its dirty laundry to be aired publicly, when this is precisely what is required. NUMSA and SACCA have always stated that, for years, large scale corruption has been ignored, or supported, by management and constitutes the dominant reason for the demise of the entity.

The conduct of some unions, like NTM, who represent executives facing corruption charges, while attacking credible executives like Mr Jarana, is also questionable. NTM members should ask themselves why their union is supporting those responsible for the collapse of the Airline.

The delay, in taking action against those implicated in corruption, is unacceptable. NUMSA and SACCA therefore intend opening criminal cases against all individuals implicated in corruption at the Airline as a matter of urgency. Workers should not have to pay for the sins of the corrupt through job losses. Their actions have led to the airline collapsing and it being placed under business rescue. 

Issued by NUMSA and SACCA