The chief executive of the Institute of Directors South Africa, Parmi Natesan, noted that John Lamola's appointment as SAA chief executive by the Department of Public Enterprises suggests that the government had failed to take note of the lessons of recent years when it comes to good governance.

The news that John Lamola has been appointed as both executive chair and chief executive of South African Airways (SAA) was greeted with dismay by the Institute of Directors South Africa last week.

This came shortly after Public Enterprises Minister Pravin Gordhan publicly defended the decision to privatise the embattled national carrier. Last year, it was revealed that Takatso Consortium, which includes the private equity firm Harith General Partners and the aircraft leasing company Global Aviation, would buy a 51% stake in SAA.

However, National Treasury says this would be an ongoing financial risk to the state because the sale terms are currently skewed heavily toward the buyer. According to Bloomberg, Takatso has the right to assess whether any ongoing liabilities in SAA should be settled by the government.

The chief executive of the Institute of Directors South Africa, Parmi Natesan, noted that Lamola's appointment as SAA chief executive by the Department...