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SAA wants R141m sponsorships back

Jul 21 2010 08:22 James-Brent Styan Print this article | Email article

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Johannesburg - SAA is suing its former CEO Khaya Ngqula for R30.8m, and is considering how to recover R141m in misspent sponsorship money.

This comes after the findings of a KPMG forensic report findings on the airline were disclosed on Tuesday.

The R15m report, which exposed a number of operating deficiencies in the airline, was welcomed by the current chairperson Cheryl Carolus.

The R30.8m includes R27m Ngqula paid executives as retention bonuses. He was not authorised to do so. This amount was outside the board-approved mandate for payments, and Ngqula had consequently acted illegally by approving it.

SAA is considering further steps against Ngqula regarding two sports sponsorships he approved between 2006 and 2009. One was R21m for Angel Cabrera, an international golf player, and the other one R120m for the ATP tennis tour.

Ngqula could approve sponsorships of between R1m and R2m a year at most, said Carolus.

She said Ngqula had had time to react to the findings, but had not cooperated.

The SAA legal team would now advise the airline on the recoverability of the sponsorship monies.

The investigation into Ngqula began after one of SAA's trade unions, Satawu, handed information to Brigitte Mabandla, who was minister of public enterprise at the time.

Satawu general secretary Zenzo Mahlangu said the investigation had shown that the union was in the right.

Mahlangu said SAA should be lauded for the steps it had taken.

To put a stop to the financial plundering so rampant among the executives of state-controlled companies, there should be clear and serious consequences if they are found out. SAA's actions could prevent future mismanagement, said Mahlangu.

The SAA board will present its report to parliament.

- Sake24.com

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wes Jul 22 2010 11:32

Viva, ANC, viva!! Amaaaandla awethu!!!

NB Jul 22 2010 10:01

Ha, I remember good ole Khaya flying by private helicopter to tell the travel agent industry that he could no longer afford to pay them commissions for selling tickets on behalf of the airline. Seeing as they were responsible for 85% of the airlines revenue at the time! No other industry relies so heavily on an agent distribution network and then refuses to pay for it! So at the end of the day, its Joe Soap in the street who pays for it!

jujustar Jul 22 2010 08:47

If I knew that I wouldv contacted him to sponsor my music career....lmao! 1 million wouldv been sufficient!!!

Snakebite Jul 22 2010 08:02

HA_HA_HA_HA_HA_HA - They want the money back - HA_HA_HA_HA - i'll bet you anything they wont get anything back = not even a used condom used to screw the airline with - will be returned. What big daddy zumie does his chronies will do and NOTHING will and can be done about it HA_HA_HA_ all the way o the bank!!!!

LCK Jul 21 2010 16:17

The Parliament has never acted on the millions misused by the police, foreign affairs, MPs etc.What will they do now?Blacks wake up!

not so Jul 21 2010 16:13

Khaya Ngqula is a DA member

wiggles Jul 21 2010 15:47

Okay lets ask one question. Who were the auditors and the audit firm between 2006 and 2009 as they certainly got paid to do there job. Once this information is obtained SAA's new CEO should insist that the audit firm be investigated as well and should insist on seeing the audit reports to see if this was picked up. If not then ask the audit firm to pay back SAA for the money paid to them during 2006 and 2009. I smell a rat somewhere in this little story.

Ngqula the Criminal Jul 21 2010 15:29

I thnik the SAA board is right, a clear message must be sent out there to all the corporate criminals out there that crime does not pay. Ngqula to rot in Jail.

chad Jul 21 2010 13:45

And these are the days of our lives, Yes another day of corruption, pitty it's always the same old names they just move around to each get there share. VIVA ANC VIVA who is next? first lest see your criminal sheet before placing you on top.

Richard 2 Jul 21 2010 13:33

I wonder why they don’t also take their auditors at the time to task as well. KPMG was appointed to do a forensic audit. The usual annual audit is required by law to check on delegation of authorities especially for the big ticket items. Looks like more than the CEO were at the pigs feeding trough!!

DAVE Jul 21 2010 13:12

Cheryl Carolus is the SAA Chairperson is this finding about tanishing a FORMER CEO 'S GOOD WORK AT SAA ,IT WAS CRIPPLED BEFORE HE COME OVER THERE.i think the air line must move on than waste money onn lawyes because the legal fees might be 90% of the amount they sueing the FORMER CEO .the man created structure there before all those findings

Jean Jul 21 2010 13:11

As usual nothing will come of this!! PATHETIC.

Suffused Jul 21 2010 12:57

Transparency is nonexistent in state owned enterprises. What a surprise, everyone works in their little silos, guarding information carrying on like little piglets @ the trough and then they surprised when they become bacon!!!!Wait there is more to come:) Ode to George Orwell

craig Jul 21 2010 12:50

Where is he now??? ESKOM !!! another fat cow to kill....

Not the 1st time Jul 21 2010 12:30

Mr. Ngaqula was investigated when he was at the IDC for some very questionable deeds so what's new. Robert McBride on short list for top PTA job so the message is you have to be an ANC criminal to get where you want to be! Its part of the ANC induction policy! Crime pays when you work for the Government!

Hau cant believe! Jul 21 2010 12:27

And the people are still starving/homeless/unemployed. The ANC are saying up yours to all you loyal ANC voters and Mr. taxpayer we will keep on spending! By the way, what was the outcome of Zuma's IT declaration? Nothing!

Shrek Jul 21 2010 12:09

Attached all off Ngqula's assets and sell it off. This should rack in a few millions.

J ZUMA Jul 21 2010 11:40

eye beta bee carfool..thiz guy haz the potenzual to run for prezident!!

Yet Again Jul 21 2010 11:35

Sadly yet another example of sleepy board members or were they all overseas on free tickets..... SAA has always been a can of worms. Appoint somebody from the private sector as CEO, based on their experience.

malcolm stanier Jul 21 2010 11:33

In response to the request by THE MAN to investigate other businesses you should perhaps go and learn about the difference between a private company and the government. Unfortunately the people in government have the mentality that the money they spend is theirs and not the people who pay taxes

Asking Jul 21 2010 11:10

How could the money be paid out without knowledge and support of other employees? Did the CFO not create the necessary control stuctures to prevent the payments from being made? Did the External auditors not pick this up and did they report it to the Audit Committee- the amounts were significant and if they have not, they were negligent. Recover the money from them! Where were the Internal Auditors? Did they report it and if not why not. It seems as if one person is taking the blame for lots of negligence and incompetence.

andy Jul 21 2010 11:07

aaaah...at last we are shifting attention away from the little pigs like uncle jackie and jayzee who accepted a few shopping bags and small change from dodgy individuals to the makulu pigs who stand at the main feeding trough. khaya is the tip of the piggie-iceberg. it's a start but let's get down to the corvettes and submarines and jet fighters that were all guzzled out of the big ANC trough and fry some serious bacon. squeal like piggies comrades!!!!

Richard Jul 21 2010 11:05

Disgusting !!!!!!!!!!!!! How do we get the message across to the millions who voted ANC as most are living in squater camps with hardly enough money to feed their famalies. All these billions being spent/stolen/ etc etc etc would have gone a long way to help solve the dilema . The problem is within the ANC .

Lotto winner , Jul 21 2010 10:44

But remember, he also had to take his family and friends to look at a crane in Dubai.

Treba M Jul 21 2010 10:42

Maybe all these millions were authorised by Trevor Millions when he was a Minister of Finance. He is now protecting them. Shuu! this government

Michael Bowery Jul 21 2010 10:29

Dear Ms Carolus. It would restore some public confidence in the ANC if for once this issue were to be taken to its final conclusion with Ngqula being convicted, stripped of his assets and gaoled for his offences if proved to have been committed. However, our experiences of the ANC reflects the probability that it will never happen. That like many others in that organisation - nothing will be permitted to disturb the path of criminal mismanagement and corruption which has become the`norm.'

DC Jul 21 2010 10:27

Dont forget the police chief Cele who stayed at the Hilton in Durban & other 5 star hotels around the country while his house was being renovated at the states expence.He did not even get a slap on the wrist.He spends R500000 on hotels, when this money could have built 2 houses for the poor.Zuma men are now hunting down all the Mbeki loyalists, and when Zuma goes, the new president (if not Malema and the like) will start hunting down Zuma men.There will be no end to the corruption unless the ANC goes out.

Will Jul 21 2010 10:02

What about the board members who overlooked all of this. Maria Ramos, Jakes Gerwell. While we all are looking at SAA Maria Ramos might be enjoying her holiday in the south of France with our ABSA money. What has she in anyway achieved in the last 10 years, I think she can’t even run a corner shop.

Joe Jul 21 2010 10:01

These acts are deplorable. And judging by the comments are lot of the people are angry, but dont believe for one moment that this did not happen during the nationalist party rule. You are kidding yourselves.

DC Jul 21 2010 09:54

SAA gives millions to non-sa sport sponsorships, but try approaching SAA for R3000 to allow an under 13 soccer team to buy kit and pay for petrol to get them to games for a year.You would be laughed at and told that you should come back in 5 months. Were do these peoples priorities ly,Oh stupid question, there priority is themselves. But easy come, easier go, so he will soon be out of money & living in a mansion with illegal lights & no rent paid for 2 years. This is what becomes of crooks like him

DC Jul 21 2010 09:50

Remember GOGP.COM.which used to be on some F1 cars. everyone taught it meant Go Grand Prix, but it realy meant Go Gauteng Province..Gauteng government also did the very same thing and nothing was done to the then man in charge.I forget his name, but he is now the leader of the ANC for the Gauteng province.Millions are being squandered and these Poopholes get 1Mil in there back pocket for every 10Mil they squander. There are many other example,most recent being all those government departments spending Millions on world cup tickets. When are those people going to be brought to book? No use going after 1 man for now, when many other "cadres" are using public funds for there own personal gain.

executive Jul 21 2010 09:49

Take the former ceo for everyrthing he's got, I want to see him living on the streets

Tgif Jul 21 2010 09:49

Only 141 million rands squandered what an amateur he must be an ANC minnow because he has not yet learnt to steal in the big league.What a political ANC woos

executive Jul 21 2010 09:48

Take the former ceo for everyrthing he's got, I want to see him living on the streets

Vico Jul 21 2010 09:44

I agree with M -- make sure that 40% tax was paid on all of the bonuses and also go after the Board members...

ockert Jul 21 2010 09:40

It makes a person sick to see how money is being mis-spent by SAA, now what about Telkom, Escom (again MR Alec Irwin, probably during his time) and all the rest. Sponsorships for what, for the privialge of a small little badge on his sleeve(Angel), money that cannot be recovered because he most probably did his small advertising bit. How much more must we endure. The country needs the funds to expand,and create jobs - but no - useless Managers/CEO's etc waste as if they are Donald Trump or Bill Gates - The Cadre's think it's their money to do with as they wish.

Andyjo Jul 21 2010 09:36

AncLOOTA CONTINUA -ad infinitum..

Kevin Venter Jul 21 2010 09:36

Making an example of one buffoon sadly doesnt stop the 2 million others doing the same thing and WASTING corporate money that comes from the consumers OR wasting tax payers money. A small win nonetheless but far more needs to be done to erradicate corruption in this country.

Flash Jul 21 2010 09:35

Wow corruption in a state controlled company. No way, thats unheard of in SA

Marius Jul 21 2010 09:32

Who was the auditors at the time? Who authorized their payment?

So whats new I ask? Jul 21 2010 09:32

Just another brick in the corrupt ANC wall of money steeling, greedy, self enriching brothers in arms. Nqacula/Maroga/Zuma/Beki/Celebi/Malema/and/and/......African National Chaingang hard at work!

rich Jul 21 2010 09:30

Another case of ‘look how diligent we are’ after the fact. Another con job on the public.

gfm Jul 21 2010 09:29

He must have had accomplices - if expenses were not approved or ratified by the Board, how were the sponsorship and other payments executed? One crooked CEO cannot do this on his own. The public has a right to demand the money back, sponsorship should be for local talent first, so recover that as well. I wonder how much of the R21m Angel Cabrera "gave back" to the hand that fed it???

Dizz Jul 21 2010 09:28

Can anyone tell us about the motor racing sponsorship to the Doran Racing team in the US - "Doran Racing will run its Ford Dallara Daytona Prototype in SAA/McDonalds livery in the Grand Am Rolex events at Watkins Glen and Montreal.The car will be driven by Dion von Molkte who raced a Team Timken V8 Jaguar at Kyalami last year and New York based South African Mark Patterson. "

nigel Jul 21 2010 09:27

21m for Angel Cabrea, OMG, what was this idiot thinking. Its about time that these corrupt parastatal eletists are brought to book.

@AJ Jul 21 2010 09:23

AJ what we have here is failure to communicate. :0

PA Jul 21 2010 09:23

Surely this kind of deals must be approved and ratified during a Board Metting on which all shareholders and Government is represented. This must be investigated wider than just the final signature on the contracts. As AJ mentioned these deals were widely reported on when approved.

BJ Jul 21 2010 09:22

You put an incompetent, untrained ANC lackey in a position where a highly skilled person is required and you get this admin & financial disaster. How long can the piggybank last untill all is stolen!!!?

Flee Jul 21 2010 09:21

Leave the man alone. SAA was his personal bank account, so why everyone is soo jealouuus now. He is a freedom fighter. He is a cadre who was deployed to squander those funds. Why dont yol go after the other 1000's of cadre's who have been deployed in many positions throughout SA. POOR Khaya also has expenses, like paying for his holiday home in the south of France and sending family on holidays around the world.

Tonsil Jul 21 2010 09:20

This whole debacle of Ngqula overstepping his boundries smacks of incompetence by the SAA Board. Why did they not stop it or fire Mgqula. Who was the chairman at the time. The funds must also be recovered from the Board Members (or is BORED Members)

Master Gee Jul 21 2010 09:19

Agree 100% with AJ and also why didn't anyone ask questions when R21m was given to Angel Gabrera. Who the hell is Angel in the context of SA sports people who need a helping hand. Again a case of the cronies being elected to key positions and abusing their positions.

PA Jul 21 2010 09:19

Surely this kind of expenses must be approved via the Board and ratified during a Board Meeting? With government on that Board doesn't the liability not go much wider than just the final signature? AS AJ said this was not deals that was not widely reported!!!

M Jul 21 2010 09:18

While SAA intentions do seem honourable, I doubt that they will recover a cent and ultimately it is just going to cost us the tax-payer millions more in legal fees etc. Perhaps the better way of recouping the money is to instruct SARS to make 100% sure that every cent of tax owed on salaries and bonuses has been paid and rather to go down that route. As for the sponsorships, I think that money must just be kissed good bye, but it would be prudent for SAA to desist from entering into sponsorships of any kind for a good few years.

Chris Jul 21 2010 09:17

There is so much corrution that no one knows what to do.If you blow the wisthle you might be out of a job whilst the life goes on for the corrupters and corruptee's

Taxpayer Jul 21 2010 09:16

Well done, Corporate Governance 1 - Greedy CEO's - 0

CK1 Jul 21 2010 09:15

So where was the Board during all of this. They are equally to blame....

John van Nieuwenhuiz Jul 21 2010 09:15

VIVA ANC About says it all

TM Jul 21 2010 09:15

When the SAA pilots complained of mismanagement and misuse of funds to Ngqula's china Alec Irwin, they were accused of being racist. Irwin has a lot to answer for.

Blikperd Jul 21 2010 09:14

This is just idiotic. How can corruption like this be tollerated. How did he even get in this position. Now I see the dept of Science and technology is moaning bout a few more millions to fund research on the Joule car. R142 million on sport sponsorships for an unknown golfer, and a tournament in wich South Africans don't play a part, but not for technology that can change the world.

Dave Jul 21 2010 09:14

Every political initiated appointment with a ANC smell ends up in either self enrichment or a forensic disaster.SABC, SAA, Telkom ext . ext it will continue and continue because they get away with it.

Sultan Jul 21 2010 09:13

How much of the sponsorship went to miself?

DC Jul 21 2010 09:11

TOO LATE SAA. What were your board members doing when the CEO was signing of on all these things. sitting and twiddling there thumbs as usual i suppose & collecting salaries and tenders for doing nothing.Why do you sponsor an international golf star who earns enough already and is past his best?What about young South Africans who realy need the sponsorship?

webb Jul 21 2010 09:11

Quite how someone can authorise such vast sums of money without anyone knowing or questioning it is beyond comprehension and indicate a complete lack of corporate governance - but then again are we surprised when "cadres" are appointed to run these huge multi-billion rand entities. Another blunder that we can only hope will awaken some sort of collective concience or responsibility in government and Unions to push for the promotion and apppointment of qualified people, not cadres' whose only qualification is "struggle credentials" This country cannot afford to continue to pay for rampant greed and stupity of these political appointments.

skoozy Jul 21 2010 09:10

Looters Unlimited!!!

terry Jul 21 2010 09:09

Yet again, the government has demonstrated gross incompetence in managing these state run etnerprises. I am terrified of their attempts to set up state run pension funds and medical scheme - it is just another way to get their greedy hands on more money that they will abuse for their own ends. They are totally incompetent in managing any of these enterprises.

Simon Says Jul 21 2010 09:09

I just cant figure out how they get away with this. How ignorant are the others? Are they really that pathetically stupid? If they dont know what they must do, and what their duties are then how do they get appointed. Its so embarrassing for those appointing them, its disgusting. Its just a a pity this all points to one political party!

Keith Jul 21 2010 09:08

Yawn, what's new!!

Makapa Jul 21 2010 09:07

Is Chery Carolous an SAA CEO or Chairlady of the board? Please confirms your reports before you publish articles.

Robert Jul 21 2010 09:03

A good news story for once. Only I don't believe they will ever get their money back. I am working in another Govt. Dept. which is constantly in the news for misappropriation of funds. The boss my lose his job. But he always keeps his generous severance package.

William Jul 21 2010 09:03

What possible benefit could SAA have recieved from giving 120m to ATP Tennis Tour which never/hardly ever has tournaments in SA?

MMX Jul 21 2010 08:59

AJ, i totally agree with you on your statements. I remember the media reporting on the "big tennis sponsorship" during the reign of Khaya very well. Why didnt the SAA board do something then? Why didnt anyone do something then? Now SAA has spent a good R15M of tax payers' money into this forensic report. This for me is the reason why i will not be using the services of SAA to fly!! Khaya over-spent monies, now SAA is also spending money towards this report: so SAA has spent over R50M of tax payers' money on what??? Nothing, as this situation couldve been avoided much earlier!! Why do you have board if they can't even do their job properly??

Willie Jul 21 2010 08:56

Another reporter that's got no idea what he's writing. Irreponsible chap. Since when is Cheryl Carolus the CEO of SAA? She is the Chairman of the Board Mr. Journalist!

Burtfred Jul 21 2010 08:42

This parliamentary report will fall on deaf ANC ears. The litigation against Ngqula, if it ever takes place, will go on for years and waste millions in taxpayers money. The man was the the wrong person for the job and never should have been appointed in the first place.

bubble Jul 21 2010 08:41

I understand Cheryl Carolus is the SAA Chairperson and not "current CEO". Well done to her nonetheless! Lets hope she can follow through....

anash Jul 21 2010 08:41

Great work SAA! It is unbelievable how such gross amounts were approved by people who came up from poverty stricken communities! Unbelievable ...these rogues of the struggle MUST be prosecuted and made to pay back for their greed!! Obviously Ngqula ... received huge handouts from the sponsors he approved!!! Now the chickens will come home to roost!! Exciting times.

AJ Jul 21 2010 08:35

So why was he allowed to sign off on them? As per usual, the rules are there, but NOONE follows up or says anything until well after the time. How exactly are you going to recoup money from sponsors? Impossible. Why cant you just abide by the rules in the first place. Are you telling me a CEO signs off on 121 million (when 2 million is the max) and NOONE knew? The sponsorship value was reported in the media for pete's sake at the time...


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