Portfolio Committee on Transport

Draft Minutes of the Proceedings


Date: 14 March 2007
Venue: S26, First Floor, NCOP Wing
Agenda: Hearings with South African Civil Aviation Authority on Budget and Strategic plan for
2007-08(SACAA)

1.Present

African National Congress
Mr JP Cronin (Chairperson)
Mr MI Moss
Ms ND Mbombo
Ms B Thompson
Mr BL Mashile
Mr PS Gabanakgosi
Ms N Khunou
Mr OM Mogale


Democratic Alliance
Mr SB Farrow
Mr M Swathe

2. Apologies

Mr NE Magubane- ANC
Ms MD Nxumalo- ANC
Mr SA Mshudulu - ANC
Mr DG Schneemann-ANC
Mr LN Moss- ANC
Ms NS Nkabinde-UDM
Mr BE Pule – UCDP

3. The following were in attendance
Mr Zakes Myeza: Chief Executive Officer-SACAA
Mr Duke Moorosi: Chairperson of -SACAA
Mr Deena Pillay : Director -Finance
Mr Johann Bierman: Director –Aviation Infrastructure




4. Proceedings

Mr Myeza outlined a brief overview of the strategic plan and its financial impact for 2007/08.The presentation highlighted the following issues.
Situational Analysis
Current situation and implementation of strategic plan
Strategy roll out
Financial implications


In 2006 March, a new CEO was appointed, immediately after his appointment he conducted a situational review of the SACAA business environment. The findings identified a couple of challenges that made SACAA to be dysfunctional and these were:

Conflict of interest between Executives and senior managers who are union members
Culture of non performance
Poor system and processes
Incoherent and misaligned structure leading to structural conflicts and process disconnects
Poor industry view of organization competence
Negative findings of 1999 audit and 2001 were follow-up the International Civil Aviation
Organization (ICAO).

Many of these findings were not corrected in the six years since the audit. In September 2006, an immediate survival strategy was developed. Certain actions were prioritized; this included ensuring that the July 2007 ICAO audit is passed and building technical and managerial staff and skills level. The board also formulated five strategic objectives to address short-term and long-term strategic goals.

Regarding financial implications, a review of the organization was done in 2006 highlighting unresolved findings that addressed the 8 ICAO critical elements. An amount of R 56m budget was approved for the Class A1 project that takes place in the 2006/07.this funding was used for addressing the legacy of the dysfunctional SACAA. There is a deficit of R45, 2m for 2007/08 which is an accounting deficit as a result of this, there is no need for additional funding for the entity.

5. Issues raised by Members

Members all agreed that it was a very honest report as compared to previous ones but saw these problems as systematic issues
Members linked the negative findings as related to skills capacity
There were concerns around high level of vacancies
Members raised concerns on the issues of roles of the CEO and that of the Commissioner as stipulated in the legislation.
The committee wanted more clarity on the equity policy of the entity.
Numerous other issues in the public domain relating to previous management conduct


6. Resolutions

Requested SACAA to forward an Audit report
Requested full report on regulation of Huey helicopters.


7.CLOSURE

The Chairperson thanked all Committee Members for their participation and
the meeting adjourned at 13h45.


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Chairperson Date