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Former South African Airways (SAA) chairperson Dudu Myeni has been appointed as special adviser to Transport Minister Joe Maswanganyi, Timeslive reported on Sunday.
The controversial appointment could see Myeni take home around R1-million a year.
This takes place as government considers moving SAA from National Treasury to the Department of Transport.
However, South Africa's top banks warned that it could recall roughly R8 billion that SAA owes to them.
The Finance Minister's spokesperson Mayihlome Tshwete has told the Sunday Times that the department is not aware of any plans to move SAA.
However, the Transport Minister has confirmed that a national review to move the airline to his department was underway.