South Africa: SA Express Seeks UIF Assistance to Pay Salaries As Acting CEO Resigns

analysis

SA Express is looking for help from the UIF to pay March salaries even though it hasn't made contributions to the fund - on behalf of its employees - since it was placed under involuntary business rescue by the High Court in Johannesburg on 6 February 2020.

SA Express will be the first distressed state-owned enterprise to approach the Unemployment Insurance Fund (UIF) for assistance, to pay outstanding March 2020 salaries to its 691 employees because it has run out of cash and might be liquidated.

At the same time, the airline announced on Monday 30 March 2020 that its interim CEO, Siza Mzimela, has resigned after 17 months in the top job to "pursue other opportunities". Thuli Mpshe, the acting general manager for human capital at SA Express, has been appointed as acting CEO effective 1 April.

Mzimela, who was appointed in August 2018 to restructure and clean up the airline, which was at the centre of SA's State Capture story, becomes the fourth CEO to resign in about three years. The airline hasn't had a permanent CEO since long-serving CEO Inati Ntshanga resigned in March 2017.

Mzimela's resignation could not have come at a worse time for the...

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