4 days ago
Transport shake-up: Creecy names new SAA, RAF boards in governance overhaul
Transport Minister Barbara Creecy has announced leadership changes across the Road Accident Fund, South African Airways and Transnet, moves she framed as part of efforts to enforce 'good governance' across transport entities.
'Good governance of our transport entities is central to their effective performance,' said Transport Minister Barbara Creecy on Friday, 8 August 2025, speaking in Pretoria.
State-owned entities in the transport portfolio have faced prolonged financial instability, governance failures and operational bottlenecks, particularly within the Road Accident Fund (RAF), South African Airways (SAA) and week, the Cabinet approved the appointment of an interim board for the RAF for six months or until a new board is appointed, whichever comes first. Kenneth Brown, a veteran of the Development Bank of South Africa and National Treasury, will chair the interim board, with Nonhlanhla Mabusela-Aikhuere, a senior investment banker, as vice-chair. The previous board was dissolved on 15 July 'due to its failure to act in the best interests of the entity and to fulfil its fiduciary duties… It therefore became urgent and necessary to close the governance vacuum in the RAF leadership,' Creecy said at the time. The RAF has been in crisis for several years and its embattled CEO, Collins Letsoalo, was recently suspended due to staggering overspending and unqualified audits.
Read more: The interim board's mandate aims to rectify these challenges. It's been tasked with providing strategic direction and restoring governance stability, addressing deficiencies such as 'frequent incurrences of default judgments against the RAF', filling critical executive vacancies, and cooperating with current and future Special Investigating Unit (SIU) investigations — the scope of which was recently expanded after whistleblower reports to Parliament's Standing Committee on Public Accounts. The Transport Department is also finalising the Road Accident Benefit Scheme Bill, which would introduce a no-fault system and a defined schedule of benefits as part of efforts to reduce contingent liabilities.
Slow but sure take-off
In contrast to the RAF, South African Airways (SAA) has been showing slow signs of a turnaround, finding itself debt free and opening up both local and international Cabinet approved the appointment of a new permanent board, with experienced business rescue practitioner Sedzani Faith Mudau serving as chairperson and finance professional Fathima Gany as deputy. Creecy noted that SAA had returned to profitability over the past two years, though the most recent audit reflected a slight deficit, and credited the outgoing interim board for leading SAA from its 2021 business rescue exit to being a stable airline once again.
While the airline — and the broader aviation industry — has faced challenges, the success of SAA and the broader aviation industry remains a crucial economic expert and author of Plane Talking, Linden Birns, told Daily Maverick that Singapore 'became a magnet for financial and services industries through… air connectivity', and that an SAA turnaround could play a similar role in unlocking further economic growth in South Africa. The ministry expected the new board to use its 'debt-free balance sheet and ring-fenced liquidity' to expand the fleet from 20 to 50-plus aircraft by 2030, funded through capital raising, internally generated cash, operating leases and market funding, said Creecy.
Transnet changes
At Transnet, which has seen almost as many challenges as the RAF regarding allegations of mismanagement and corruption, Creecy appointed Khulekelwe Glynnis Mbonambi as a non-executive director for the remainder of the board's first term, which expires in July 2026. A chartered accountant, she 'brings much needed financial skill to the organisation', said Creecy.
The minister said this was 'especially important today as we navigate Transnet towards financial stability… important determinants for gaining required operational efficiencies so desperately needed in freight logistics, port services, contributing to trade growth and job creation'.
The way ahead
While the appointments close governance gaps at the top of these entities, challenges remain. For the RAF, sustainability of the funding model, delivery on governance reforms, and progress of SIU investigations and the Road Accident Benefit Scheme Bill will be key tests. For SAA, the fleet expansion plan hinges on capital market appetite and maintaining operational independence without sovereign guarantees. At Transnet, operational bottlenecks and debt challenges were not addressed in detail at the briefing.
Creecy's appointments signal movement — if not rapid movement — in replacing underperforming boards and an intent to stabilise governance. The next measure of success will be whether these changes deliver measurable improvements in performance — should they do so, there will be both measurable and visible impacts for South Africa. DM
