SAA chairperson Dudu Myeni is reportedly awol while SAA struggles to repay a R2,3bn loan to Standard Chartered Bank. Myeni's time at SAA is up, according to recent reports. Under her tenure, she clocked up losses of more than R10bn, got rid of several top executives, and was embroiled in financial irregularities, such employing a company with no experience to refinance R15bn worth of loans for the airline.
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State-owned enterprises can never succeed no matter who runs them, argues Leon Louw of the Free Market Foundation, because the normal disciplines of the market are absent. Managers will serve their political masters, knowing they will be fired if they don't.
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The State spent R33,7 billion on consultants in the past financial year, prompting Parliament's public accounts watchdog to warn of the emergence of a "parallel state." Where did the money go? On counting cushions, training in positive discipline and duties that public servants are supposed to perform themselves.
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