R1.85m Bonus paid to SAA exec appalling considering plummeting profits

August 31, 2006

STATEMENT ISSUED BY:
MR.HENNIE BEKKER - MP
IFP SPOKESPERSON FOR PUBLIC ENTERPRISES


Mr. Hennie Bekker, the IFP spokesperson for Public Enterprises, today expressed dismay at the announcement of the R1.85m bonus paid to the chief executive of SAA despite the net income plummeting by 90%.

Mr. Bekker said:

"The IFP calls into question the paying of bonuses and salaries by state-owned enterprises, like SAA, to top executives although the performance of the entity is debatable. We are concerned about the bonus of R1.85m that was paid to SAA chief executive, despite the profits of SAA plummeting by 90%".

In conclusion, Mr. Bekker said: "The IFP would like to know the details of the performance appraisal that was undertaken to justify the exorbitant remuneration received by Ngqula".



FOR FURTHER INFORMATION CONTACT
Mr. Hennie Bekker - MP: 083 255 4520
Noleen Hendricks: 082 886 9848