SAA Technical says it is intensifying efforts to root out corruption, theft, and governance failures as multiple investigations uncover what its chairman describes as "deep rot" inside the state-owned maintenance subsidiary of South African Airways Group.
Briefing the parliament’s Portfolio Committee on Transport on April 21, SAA Technical chairman Lisa Mangcu said major losses linked to stolen aircraft components had been discovered during investigations by South Africa's independent anti-corruption watchdog the Special Investigating Unit, the National Prosecuting Authority's Asset Forfeiture Unit, and the Directorate for Priority Crime Investigation of the South African Police Service.
"We have identified the key areas where we are losing money at SAAT, such as theft of very expensive avionics components," Mangcu said. "Most of them have been sold out of the country, but they have been followed, […] we know the individuals, we know the companies involved."
Some assets have already been frozen and recovery efforts are underway, he said, with further details to be set out in a written report to parliament. "We already have convictions in court […] of some individuals from SAAT who were found with their hands in the cookie jar," he added.
Mangcu also pointed to systemic weaknesses in inventory controls, saying aircraft parts were sometimes ordered as "urgent" but left unused in storage, creating opportunities for theft. "We’ve got a lot of parts in the stores that actually are not being used. And that is when they start walking," he said.
Mangcu also cited examples of conflicts of interest involving staff members doing business with contractors linked to their families. "The story is quite scary," he said.
Staff involved in the clean-up have faced intimidation. "One was telling me his wife was confronted in a shopping mall and told, ‘tell your husband to stop what he’s doing’," Mangcu said. "That is the extent of how deep that rot is."
He said the company is introducing lifestyle audits, tightening employee vetting, and overhauling security procedures.
SAAT is also attempting to rebuild its commercial reputation after what Mangcu called a "haemorrhaging" during the "state capture" era under former president Jacob Zuma. Plans include expanding services to foreign airlines and restoring European certification standards. "It’s also cheaper for outside countries to do their services here," he said.
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