SAA executive consultants paid R16 million salaries

Embattled national carrier, South African Airways (SAA), has admitted to paying R16 million in executive consultancy fees. This includes R10 million for three personnel working on a six-month contract.

Problems keep boarding SAA on a flight destined for collapse. This year alone, the airline received over R15 billion in government bail-outs. It’s been argued that without government assistance, the airline’s operations would immediately cease.

Read: SAA asks Emirates for business advice, not for cash investment

The airline has stated that in order to keep the airline operational it will need a further R21 billion by 2021, by which time it should ‘break even.’

Generally, when a business is on the verge of bankruptcy, eyes shift towards operational executives and their salaries. It’s not the first time SAA has been accused of overpaying employees.

As reported by Mail & Guardian, finance minister, Nhlanhla Nene, requested information relating to contracts undersigned by the debt-ridden airline. What Nene found out was consultancy remunerations exceeding R16 million.

Read: SAA CEO – South Africans must support the airline

South African Airways and Robert Head

SAA’s interim chief financial officer (CFO), Robert Head, is due to receive a payment package amounting to R5.5 million; this for six months work.

Head’s package includes a R1.9 million retainer, a R3.2 million salary, and a R342,000 car allowance.

The interim CFO’s salary, if annualised, would exceed that of any other financial executive operating within a state-owned enterprise.

SAA has confirmed that Head and three other executives were hired by the company as ‘fixed-term contractors’.

SAA ‘skill shortage’

Other consultants include Thabang Motsohi and Mpati Qofa, who will be paid R2.088 million each for six months work. Another newly appointed contractor, Robert Newsome, will be paid R2.5 million for a 12-month contract.

Company CEO, Vuyani Jarana, is set to earn a R6.7 million yearly salary, and has defended the exorbitant payment to contractors, stating that ‘it is necessary to address a severe skills shortage at the airline’.