SAA to sue Ngqula for R31m

SOUTH African Airways announced yesterday it plans to sue its former CEO Khaya Ngqula for R30.8m, following a forensic investigation by KPMG which found Ngcula exceeded his mandate.

SAA chairperson Cheryl Carolus said steps would be taken to recover R27m spent on retention bonuses for SAA employees under Ngqula, which was in excess of his authority. The board would also seek to recover R3.3m for the hiring of hospitality suites in various sports stadiums, and institute action for at least R500 000 for free junkets Ngcula granted to friends.

"The law requires us to take every reasonable step to recover the money," Carolus said.

The investigation, which commenced in February 2009, consisted of two parts.

The first part was an investigation into allegations that Ngcula was guilty of tender irregularities and fraud. He left the state-owned airline under a cloud in February 2009, after accepting a golden handshake of about R8m.

The second phase of the report investigated procurement and management issues at SAA, and included all significant transactions between 2003 and 2009.

André Viljoen was CEO of the airline at the time.

At this stage, SAA refuses to divulge other officials and parties fingered by the report.

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