UNITED DEMOCRATIC MOVEMENT

MEDIA RELEASE

RADEBE MUST EXPLAIN SAA IRREGULARITIES

STATEMENT ISSUED BY MR. C. FROLICK, MP
UDM SPOKESPERSON FOR PUBLIC ENTERPRISES

The UDM expresses its concerns surrounding the serious allegations regarding former CEO of SAA, Coleman Andrews.

The UDM is flabbergasted at the fact that so much money is spent at the expense of the South African taxpayer. The Minister of Public Enterprises, Jeff Radebe, must clarify the role of his department in this matter, especially since Mr Andrews was praised repeatedly by government and parastatal officials, such as former Transnet MD, Saki Macozoma. The much-vaunted turnaround of SAA resulting in R 350 million profit last year has been attributed to Mr Andrews. Ironically, this profit is completely overshadowed by the R 200 million that Mr Andrews reportedly received for is work in the past two years. In addition, there is an alleged amount of R 310 million that was paid to consultancy companies in the past 12 months, one of which Mr Andrews apparently has a stake in.

The long-term financial outlook for SAA has also been brought into question. The gains achieved in the past two years may not be sustainable in the long-term, leading to huge costs in terms of possible job losses, and the devaluation of billions of rands of taxpayers' investment.

The UDM urges Government to urgently investigate irregularities surrounding issues of Mr Andrews package and the future viability of SAA. We call on Minister Radebe to clarify these issues in his budget speech tomorrow.

Cape Town
31 May 2001