Disciplinary enquiry against suspended SAA CEO to commence on 16 March 2015

Johannesburg, 26 February 2015 – On 20 February 2015 South African Airways SOC Ltd (“SAA”) issued a media statement announcing that the Board has decided to convene a disciplinary enquiry before an independent external chairperson to consider the complaints against Mr Kalawe. It was also made clear that further communication will be issued by SAA once the disciplinary enquiry has been finalised.

The Board has however noted with concern the recent media articles, particularly the cover page story in the Business Day of 23 February 2015 with a heading “SAA in about-turn on Kalawe charges.” The story appears to suggest that SAA has backtracked on pursuing some of the disciplinary complaints against its suspended CEO, Mr Kalawe. This is incorrect. The Board reiterates its commitment to dealing with this matter appropriately, expeditiously and professionally.

The disciplinary complaints that the CEO will be required to answer to before an impartial and independent Chairperson are those that have been investigated by reputable, external and independent forensic attorneys and are pursued on the advice of senior counsel. These relate to, inter alia, to non-compliance with various critical policies and procedures as well as legislation, including the Public Finance Management Act, SAA’s supply chain management policy, the job evaluation policy, recruitment and selection policy and the delegation of authority policy, gross misrepresentation, failure to act at all times in the best interests of SAA and an improper relationship that the CEO is alleged to have had with a senior female employee within the SAA Group. These complaints follow upon an exhaustive forensic investigation and legal advice.

SAA and its Board do not consider it appropriate to comment on facts giving rise to the allegations because this may compromise the disciplinary process and may be prejudicial to the parties to the disciplinary hearing. Mr Kalawe is legally represented and Advocate Nazeer Cassim SC, a leading member of the Johannesburg Bar will determine whether or not Mr Kalawe is guilty of any complaints and the appropriate outcome.

Members of the media are requested to respect this process which is due to commence on 16 March 2015.