Parliament on South African Airways and Eskom hearings

Parliament calls South African Airways (SAA), Eskom to
account

18 February 2009

Parliament's Portfolio Committee on Public Enterprises has questioned South
African Airways (SAA) executives about SAA's measures to curb smuggling,
following the recent arrests of cabin crew at Heathrow Airport. Addressing the
Department of Public Enterprise and SAA officials, the chairperson of the
Portfolio Committee on Public Enterprise Ms Fatima Chohan-Kota, Member of
Parliament, said South Africa's image and SAA's brand name were at stake.

Tougher anti-drugs measures

Acting CEO Chris Smyth agreed that the damage to SAA was considerable and
said security measures had been stepped up after previous arrests. However,
even stricter measures were being introduced after the recent incidents of
contraband smuggling by cabin crew. Mr Peter Hendrickse, Member of Parliament,
also asked for an update regarding the retention of bonuses and the high
turnover of senior level staff.

Staff losses and bonuses

In his response the chairperson of the SAA board, Dr Jakes Gerwel said the
airline had a high turnover and was losing staff because of developments at
international level. Dr Gerwel said that the effects of the high turnover hurt
most at a technical and management level. Regarding the retention of the bonus
scheme, bonuses were approved and awarded on an individual basis.

Eskom report after election

The Department of Public Enterprises (DPE) was also scheduled to brief the
Portfolio Committee on the status of Pebble Bed Modular Reactor and Eskom, but
the Committee chairperson adjourned the meeting and informed DPE that they
still had to submit reports on the matter. The department would have to do a
full briefing at the next Portfolio Committee meeting, after the general
elections.

Issued by: Parliament of South Africa
18 February 2009
Source: Parliament of South Africa (http://www.parliament.gov.za)

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