Parliament's authority on SAA lifeline questioned

Cape Town - The stalemate between Finance Minister Pravin Gordhan and South African Airways (SAA) board chairperson Dudu Myeni is rapidly driving SAA to total collapse and simply can’t be allowed to happen to the national carrier, the DA charged on Monday.

DA shadow deputy minister of finance Alf Lees said the tabling of SAA's annual financial statements is no longer a question of time, but a matter of a "very much delinquent board".

He was reacting to Parliament's tabling on Monday of Gordhan's letter requesting a fourth extension in the last 10 months for a delay in the deadline for the tabling of these results.

He said the DA formally requested the chairperson of the Standing Committee on Finance, Yunus Carrim, to seek a legal opinion regarding Parliament’s authority in law to grant such an extension.

"It is in our contention that there is no provision made in the Public Finance Management Act whereby Parliament is given the authority to extend the deadline. Parliament must give effect to this deadline and interrogate these long overdue financials."
 
Gordhan requested extensions of the deadline for tabling of SAA's annual report for 2014/15 on 15 February, 15 March, 29 April and yet again on 7 July - this time to 15 September 2016.

Lees said SAA is currently in possession of exorbitant government guarantees, which represent a significant risk to the economy and the fiscus, and is asking for more.

"The long-overdue annual financial statements have been outstanding since 15 September 2015, that is 10 months. 10 months that Parliament has not been able to exercise its oversight role, 10 months of no accountability at SAA and 10 months of open defiance of directives issued by the National Treasury."

He said the problems persistently plaguing SAA are now a matter of public interest and must be made public.

SAA has received a number of government bailouts worth at least R14.4bn as part of its turnaround strategy, but Gordhan warned in January the carrier cannot become a liability on the fiscus.

Gordhan emphasised in all his letters that the application for SAA’s going concern guarantee is still under consideration.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
18.03
-1.1%
Rand - Pound
19.93
-2.6%
Rand - Euro
17.63
-1.5%
Rand - Aus dollar
11.67
-0.3%
Rand - Yen
0.12
-0.7%
Gold
1,658.37
-0.1%
Silver
18.73
-0.9%
Palladium
2,216.01
+3.0%
Platinum
864.81
-0.2%
Brent Crude
89.32
+3.4%
Top 40
56,921
-0.9%
All Share
63,264
-0.9%
Resource 10
59,793
+3.3%
Industrial 25
76,769
-2.2%
Financial 15
13,707
-2.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders