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SAA boss ducks meeting on price collusion March 09 2010 , 12:16:00

South African Airways' (SAA) new chief executive came under fire today for failing to appear before Parliament's portfolio committee on public enterprises to answer to allegations of price collusion between airlines ahead of the Fifa World Cup. Siza Mzimela sent a SAA in-house lawyer, Louisa Zondo to a meeting with the committee after submitting documents to members in which the airline claimed it cannot discuss the issue as it is the subject of a probe by the Competition Commission.

Inkatha Freedom Party (IFP) MP Mario Ambrosini dismissed this as a ruse. He told fellow committee members the subjudice principle did not apply to investigations and was furthermore ruled "unconstitutional" by the Supreme Court of Appeal in 2007.

Ambrosini rejected Zondo's statement that Mzimela failed to appear before the committee because she had other commitments, saying she had sent a lawyer to argue the subjudice principle to stonewall questions. Committee chairwoman Vytjie Mentor agreed with Ambrosini that SAA could not hide behind the subjudice rule and recalled Mzimela to appear before the committee next Tuesday. She said the allegations of collusion were "of great concern to Parliament".

Mentor told MPs that she had received media queries from the BBC on the matter but declined to respond before SAA had had a chance to put its side to the committee.

The Competition Commission late last year began investigating SAA, BA/Comair, 1Time, Mango, SA Airlink and SA Express after concerns were voiced over ticket prices being manipulated to maximise profits from the world's biggest soccer tournament. SAA has asked the commission for leniency should it decide to refer the dossier to the Competition Tribunal. - Sapa

 

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