Suspended SAA acting CEO Matshela Seshibe withdraws court challenge over permanent job

Suspended SAA acting group CEO Matshela Seshibe has withdrawn his legal challenge against the airline over its decision to exclude him from the interview process for the permanent CEO position.

SAA executive for group corporate affairs Mphilo Dlamini confirmed the withdrawal.

“Matshela Seshibe has withdrawn the legal challenge instituted against the airline in relation to his exclusion from the interview stage of the recruitment process for the position of CEO,” said Dlamini.

“SAA will not comment further on the circumstances or reasons for the withdrawal. These matters are confidential and relate to the employment relationship.”

SAA remained committed to sound governance, due process and the consistent application of its policies and procedures.

The withdrawal comes days after Seshibe approached the high court in Johannesburg with an urgent application challenging SAA’s decision to withdraw his invitation to interview for the permanent position.

In court papers filed on October 13, Seshibe asked the court to order the airline to interview him or halt the recruitment process until disciplinary proceedings against him had been finalised.

The application was scheduled to be heard on October 20, before SAA’s expected appointment of a permanent CEO by the end of the month.

Seshibe was placed on special leave in August when disciplinary proceedings were instituted against him. He said he had applied for the permanent group CEO position after it was advertised that month and was subsequently shortlisted and invited to an interview.

However, the airline withdrew the invitation after the disciplinary process began.

In his founding affidavit, Seshibe argued that SAA had prejudiced him by effectively assessing his suitability for the position without giving him an opportunity to respond to the outstanding allegations.

“The respondent [SAA] gave me no opportunity to explain the position or to advise it of my defence to the disciplinary proceedings against me. The approach it took was simply prejudicial to me. It made assumptions about my character and suitability for office without letting me respond.”

Seshibe said no finding of misconduct had been made against him and he had a substantial defence to the allegations. The specific charges were not disclosed in his founding affidavit.

He also cited his record as CEO of Air Chefs, SAA’s catering subsidiary, claiming to have delivered record profitability, improved operating margins and increased cash reserves to their highest levels.

He further argued that Air Chefs had become the SAA group’s only profitable entity during the relevant period and had improved its audit outcomes.

Seshibe also highlighted his role in managing the group’s liquidity challenges before becoming acting group CEO in April.

According to his affidavit, SAA had entrusted him with responsibility for its liquidity crisis committee in March. He said he subsequently introduced daily cash monitoring, extended the group’s projected cash runway to September and oversaw a revised corporate plan and budget.

The legal challenge sought to prevent SAA from concluding the recruitment process without allowing him to interview or until the disciplinary proceedings had been finalised.

With the challenge withdrawn, the court will no longer be asked to determine the relief sought in that application.