Following the dissolution of the previous board of the Road Accident Fund (RAF) on July 15, Cabinet has approved the appointment of an interim board for a period of six months or until a new board is appointed. 

During a press conference on August 8, Transport Minister Barbara Creecy announced that Kenneth Brown and Nonhlanhla Mabusela-Aikhuere would act as interim board chairperson and vice-chairperson, respectively.

Other interim board members are Ntswaki Kutumela, Innocentia Mmule Pule, Richard Dyantyi, Mpontshane Alfred Mkhipheni, Alfredina (Ntina) Themba and Neeshan Balton.

Creecy pointed out that the previous board was dissolved owing to its failure to act in the best interests of the entity and to fulfil its fiduciary duties.

“It, therefore, became urgent and necessary to close the governance vacuum in the RAF leadership and it is for this reason that we asked Cabinet to approve the appointment of an interim board,” the Minister said.

The interim board will provide strategic direction to the entity and enable it to deliver on its mandate. It will also help ensure financial and governance stability at the RAF.

Creecy stressed that the interim board must help address deficiencies in governance and control systems, including frequent incurrences of default judgments against the RAF.

The interim board will have to initiate a process of filling executive positions that are critical to the mandate of the fund. It will also cooperate on current and future Special Investigating Unit (SIU) investigations, she said, adding that there is one current SIU investigation into the RAF.

“Following whistleblower reports that were given to us by the chairperson of the Standing Committee on Public Accounts, we have written to both the President and the SIU to ask them to expand the scope of their investigations,” she said.

Creecy pointed out that the Ministry had already established a panel of independent experts to advise the stakeholder and the board on the views of RAF stakeholders on how to develop a sustainable RAF operational and governance model, and to review the RAF’s business processes and propose actionable recommendations.

She said the Department would also continue to pursue all necessary measures to restore institutional stability and enhance the RAF’s capacity to fulfil its statutory obligations to the public by finalising the Road Accident Benefit Scheme Bill.

“Central to ensuring that we have stability at the RAF is a Bill that would introduce a no fault system and would also introduce a defined schedule of benefits and we believe that is really important if we are to deal with issues of contingent liability that face the organisation.”

SOUTH AFRICAN AIRWAYS

Meanwhile, Cabinet has also approved the appointment of the board of directors for South African Airways (SAA), with Sedzani Faith Mudau and Fathima Gany appointed chairperson and deputy chairperson, respectively.

Other board members include Theunis Potgieter, Mongezi India, Dennis Dlomo, Pamela Bulelwa Yako, Bongiwe Pityi, Salome Chiloane-Nwabueza, Dr Prittish Dala, Lisa Mangcu, Bongiwe Mbomvu, Siphumelele Dlungwane and Johannes Collen Weapond.

Creecy explained that the new board would lead an entity currently focused on stabilising the airline’s operating model following a return to profitability over the last two years.

She said the board would bolster SAA’s governance processes by improving responses to audit findings and ensure the airline’s financial independence was maintained.

“I want to once again thank the outgoing board who led SAA from the exit from business rescue in 2021 to becoming a stable flag carrier, operating 17 routes, including three intercontinental city pairs.

“We trust the new board will use the debt-free balance sheet and ring-fenced liquidity to ensure a fleet expansion plan that lifts SAA capacity from 20 to 55-plus aircraft by 2030,” said Creecy.

“To do this the shareholder expects the new board to embark on a capital-raising programme, supported by internally generated cash, operating leases and market funding, that enables fleet modernisation without sovereign guarantees,” she continued.

Creecy noted that members of the new board had collective experience in aviation, air services and airport administration; business, logistics and commercial operations; governance and public policy; law; tourism; security and financial administration and public accounts.

TRANSNET

Additionally, following approval by Cabinet, Khulekelwe Glynnis Mbonambi has been appointed nonexecutive director on the Transnet board of directors for the remaining term of office of the current serving board.

"This appointment is especially important as we navigate Transnet towards financial stability, which is part of our overall drive to achieve speedy financial recovery and sustainability of the company, important determinants for gaining required operational efficiencies so desperately needed in freight logistics, port services and contributing to overall trade growth and job creation.

“The appointment will be aligned to the remaining period of the board's first term, which is due to expire in July 2026,” Creecy concluded.