- In Mozambique, LAM demands exclusivity, but Kondic has accepted a position at Air Botswana. Is this a strategic mistake or a backroom deal? “It’s a blatant conflict of interest,” an aviation expert tells DW.
Another scandal is stirring the Mozambican airline: the new manager of LAM (Linhas Aéreas de Moçambique) has also taken on the role of chairman of the board of directors of Air Botswana airline, albeit in a non-executive position. In Mozambique, the case raises few doubts: it’s a serious conflict of interest.
LAM was forced – after the news was published by Air Botswana and widely commented on social media – to issue a statement in which, among other points, it stressed that Dane Kondic should work for the company on an “exclusive basis”.
One question arises: shouldn’t this point have been duly safeguarded in an employment contract with an experienced and reputable company?
Aviation expert Alves Gomes believes so and suspects that amateurism prevailed in this agreement. Gomes, who points out other strange aspects in this connection, also raises the possibility that Kondic already has one foot outside LAM.
DW Africa: Does this imbroglio at LAM involving Dane Kondic reveal a conflict of interests?
Alves Gomes (AG): It is clear that this is a conflict of interests.
In other words, a person cannot be working for one company in Maputo and another similar one in Botswana, unless the two companies have an alliance or partnership, which is not the case. So, it is a clear case of conflict of interest.
DW Africa: In its statement, LAM reaffirmed that Kondic must be with the company on an exclusive basis. Doesn’t it seem strange to you that such an important aspect as this was not taken into account by LAM?
AG: I find it very strange. This reminds me – although it is not the case – of a couple in which one of the spouses finds the other in bed with a lover.
In that case, there is still the possibility of reconciliation, but at a business level that is not possible. And I find it strange that, even after confirming the acceptance of Mr Kondic to the Board of Directors of Air Botswana, LAM is still trying to reconcile his exclusive role. This means that this had not been taken into account.
When you sign a contract, you need to define the conditions very clearly. The LAM statement indicates that this condition was not met.
DW Africa: So are we talking about some kind of amateurism or some unclear intention?
AG: I am more inclined to the first hypothesis: amateurism. I cannot see a businessman hiring a manager without clearly defining his conditions, and then that same manager feeling free to take on another position in another country, especially in a potentially competing company.
So there is something here that is not very well explained. On the one hand, it is very strange that Mr Kondic feels so free to take on a position in another country, while he had already taken on – or not – functions at LAM. This is what remains to be clarified: what his actual responsibility was to LAM.
DW Africa: Given that the Botswana company is a potential competitor of LAM, what would the issue of confidentiality be like, for example, with Kondic in important positions in both companies?
AG: It is clear that this is a huge conflict – it is antagonistic – even if Air Botswana, which is the case, were not a direct competitor of LAM. Air Botswana could only compete with LAM on flights to Johannesburg, where LAM also operates. This is not the case. But it does mean that Mr Kondic, even in a non-executive position at Air Botswana, has access to information from both sides, with which he can play and favour one side or the other. Therefore, there is a clear conflict of interests here.
From a business perspective, this is clearly unacceptable, at least within what I understand as a board member’s role. I’m not even considering being chairman of the board or managing director; just being a board member is enough to create a conflict of interest.
DW Africa: And whose responsibility would this conflict of interest be? Kondic’s or LAM’s?
AG: That’s what’s not clear. In other words, for Mr Kondic to have decided to take on this other portfolio in Botswana, it’s because he feels comfortable within what he agreed with LAM. Either he feels comfortable doing it, or there’s something wrong with it.
Either he feels comfortable doing so, or there is something that has not yet been explained – perhaps he has no contractual obligation to LAM.
In fact, one is left wondering, when reading the statement from the board – also non-executive – of LAM, that because the three directors of the companies are financing LAM’s recovery, none of them is an executive, they have taken the position of trying to renegotiate what Mr. Kondic’s role would be within LAM.
DW Africa: Given this imbroglio, do you think Kondic has already left LAM?
AG: I think so.
Source: Deutsche Welle
