Safa has begun a section 189 process as the embattled organisation plans to implement retrenchments on a major scale, citing operational cost-cutting. In a letter addressed to staff members, Safa noted that it had been experiencing financial difficulties over the past three years.
“This letter serves as a notice that Safa is contemplating the possible dismissal of some of its employees for reasons related to its operational requirements,” read the letter, dated June 10.
“It was pointed out that the audited financial statements clearly show that our financial performances have been significantly affected by dwindling revenues … In the 2018 financial year, we reported a loss of R18 million and in 2019, we reported another loss of R74 million. Simply put, we have spent R92 million more than the money we had.”