SAA board to be grilled next week after provisional financials show R4.2bn loss

South African Airways (SAA) managed to table an abridged and provisional report on its 2014/15 financial statements in Parliament on Thursday — shortly before the expiry of its deadline.

The financial statements‚ however‚ do not include the critical report of the Auditor-General‚ which will highlight any deficiencies in the financial management of the company.

The board of SAA will be grilled by members of Parliament’s finance committee on Tuesday about the management of the airline.

The hearing has had to be postponed several times pending the tabling of the 2014/15 results‚ which was delayed pending approval by Finance Minister Pravin Gordhan of yet another guarantee‚ this time of R4.7-billion‚ which brings SAA’s total guarantee to R19-billion.

In a letter to National Assembly Speaker Baleka Mbete‚ Gordhan said the financial statements were provisional as the auditors had raised certain technical issues which had to be clarified with experts.

Gordhan announced in the National Assembly Tuesday that SAA had made a R4.7-billion loss in 2014/15 and a further R1.8-billion loss in 2015/16.

According to the financial statements‚ consolidated annual revenue was stagnant at R30-billion and a net operating loss of R4.2-billion was recorded with the weaker rand contributing to the decline. Impairments amounting to R1.9-billion and finance costs of R490-million (R263-million the previous year) also impacted on the bottom line.

Savings of R790-million were made during the year by cutting costs‚ adding to the R1.5-billionn savings of the previous two years.

– TMG Digital/BDlive

One thought on “SAA board to be grilled next week after provisional financials show R4.2bn loss

  • September 17, 2016 at 4:26 am

    In my opinion any board of any company losing track of an amount of 4.2 billion has to be sacked in it`s entirety,this bad management of a State asset has been ongoing for so long now it`s time to free the bird so it can fly again,i`m sure in the right hands SAA would regain it`s status in international travel.
    This a burden on the taxpayer needs to be lifted pronto.


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