De Lille blasts former SAT board over governance, spending

Speaking before Parliament’s Portfolio Committee on Tourism on Tuesday, De Lille said her decision to dissolve the board earlier this year was not only justified but necessary to protect taxpayers’ money and restore good governance at the state-owned entity.

“Every law in this country matters. Every cent of the taxpayers matters. And part of protecting the public purse is to ensure due process and governance is non-negotiable,” she told MPs.

Board accused of acting outside the law

De Lille revealed that the board had acted outside its legal mandate when it passed a resolution granting one of its members the authority of chairperson.

“The board acted unlawfully, it exceeded its powers when it took a resolution dated 1st August… the very meeting where the impugned resolution was taken did not follow the lawful procedure in terms of section 18.2 of the Tourism Act,” she said.

The minister also flagged the board’s suspension of SAT CEO Nombulelo Guliwe, carried out without her concurrence, as further proof of its disregard for governance laws. She stressed that she had been awaiting proper legal guidance on the CEO matter, yet the board “chose to act unilaterally and unlawfully.”

Wasteful expenditure under scrutiny

Beyond governance issues, De Lille blasted the former board for reckless spending. She said nearly R900,000 of the R1.44 million annual budget for board operations had been consumed in just six months, largely through frequent meetings and extensions of contracts that had already lapsed.

“There’s been continuous governance failures by the dissolved board,” she said, adding that the financial management practices “put at risk the very sustainability of SAT.”

The minister pointed to the Auditor General’s findings, which raised concerns about persistent vacancies in senior management positions — vacancies the board had been instructed to fill but failed to address.

Tourism sector stability

Despite the damning assessment, De Lille assured Parliament and industry stakeholders that the collapse of the board would not derail the tourism sector’s growth path. She confirmed that she had appointed six South Africans with strong governance backgrounds to manage SAT’s affairs until a new permanent board is appointed.

“I want to assure this portfolio committee there's no crisis. I have appointed a group of six South Africans to handle the affairs of South African Tourism up until I have appointed a permanent board,” she said.

She further emphasised that tourism industry players continue to back government’s Tourism Growth Partnership Plan, which is being rolled out in collaboration with the private sector.

“Just last week, I met with the tourism sector, who continue to show support for the tourism growth partnership plan and execution lab as now being established,” De Lille told MPs.

A troubled institution

The minister’s intervention follows a string of controversies at SAT, including questions over transparency, procurement practices, and high-profile boardroom battles that have eroded public trust. Her decision to dissolve the board earlier this year came after months of mounting pressure, with critics warning that governance lapses were tarnishing South Africa’s image as a global tourism destination.

Tourism is one of the country’s most critical economic sectors, contributing about 3% to GDP and employing hundreds of thousands of South Africans. Analysts warn that instability at SAT could undermine efforts to grow international arrivals, especially in the wake of the COVID-19 pandemic, which devastated the industry.

De Lille told Parliament she would not allow that to happen.

“It is my duty as minister to step in when governance is compromised, and I will continue to act decisively to protect public funds and safeguard the integrity of South African Tourism,” she declared.

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