SAA's Mzimela irks MPs on 'sub judice'

Category: Business News

Date Added: 10 March 2010

LINDA ENSOR

Political Correspondent

South African Airways’ (SAA’s) new CEO, Siza Mzimela, caused a rumpus in Parliament yesterday when instead of turning up at a meeting of the public enterprises committee to answer allegations of SAA’s involvement in ticket price collusion, she dispatched the airline’s legal counsel to declare that SAA would not be saying anything because of the sub judice rule.

The snub, without any excuses or explanation, angered the committee, which then summoned Mzimela to lead a delegation to another meeting next week, with strict instructions not to try to hide behind the sub judice rule.

The committee wanted SAA and its domestic partner, SA Express, to address allegations of air ticket price collusion ahead of the Soccer World Cup, following the decision of the Competition Commission to launch a probe.

This was based on an e-mail alleging collusive behaviour sent by one of SAA’s competitors to the industry, which SAA referred to the commission. It has applied for corporate leniency in the event of being prosecuted.

Ticket prices in the period of the World Cup have risen to such an extent that many fans cannot afford to attend.

Foreign visitor numbers are far below expectations.

Both airlines have denied discussing prices for the World Cup with competitor airlines.

Committee chairwoman Vytjie Mentor refused to allow SAA’s counsel, Louisa Zondo, to represent SAA and terminated the meeting after she and members of the Democratic Alliance (DA) criticised Mzimela for the

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disrespect shown to Parliament and for trying to hide behind the sub judice rule.

“The sub judice rule is not going to work here,” said Mentor firmly. “This is the tune you have been singing since last year. We say this is not acceptable.”

SAA would also have to report on the antitrust litigation it is facing in the US, UK and other countries.

Inkatha Freedom Party MP Mario Oriani-Ambrosini said the appeal court had declared the sub judice rule unconstitutional as it violated freedom of speech. In any case, he said, it did not apply to investigations.

DA MP Pieter van Dalen said Mzimela’s failure to attend her first meeting with the committee was “an ominous and most disappointing start to her tenure”.

Competition commissioner Shan Ramburuth said the committee had every right to ask about the allegations. “I think sub judice is code for not wanting to be accountable. I think it is fine for people to be asked for explanations,” he said.

The fact that the commission was investigating did not mean the issue could not be discussed.

ensorl@bdfm.co.za

Source: Business Day