Union wants Parliament's accounts committee to get SAA's finances published

0:00
play article
Subscribers can listen to this article
Gallo Images/Jacques Stander
  • One of SAA's largest unions says the Standing Committee on Public Accounts must "do more" to hold the department of public enterprises to account for SAA's failure to produce financial statements.
  • Numsa says the absence of recent financial statements is blocking members at SAA subsidiaries Airchefs and SAAT from receiving benefits. 
  • Minister of Public Enterprises Minister Pravin Gordhan previously told the oversight committee the Auditor-General said he could not conduct an audit while SAA was in business rescue.


One of SAA's largest unions says it will be writing to the Standing Committee on Public Accounts (Scopa) to "do more" to hold the department of public enterprises accountable for embattled state-owned airline SAA's failure to produce financial statements.

"This repeated failure is having a very negative impact on SAA Technical and Airchefs which are subsidiaries of SAA. Workers at both these subsidiaries are suffering because of the non-payment of salaries," said the National Union of Metalworkers of South Africa.

SAA was placed into business rescue in December 2019. But the last set of audited financial results available its website are for the 2016/17 financial year, although some more recent unaudited results have been published. As fin24 previously reported, the financial statements of its subsidiaries - Mango, SAA Technical and Air Chefs - usually form part of SAA's.

Numsa said the absence of recent financial statements was blocking members at Airchefs and SAAT from receiving benefits. 

It wants the important oversight committee to intervene, saying up-to-date statements would demonstrate the extent of "mismanagement and rampant wastage" at the airline.

A week ago Scopa held a hearing that considered the airline's finances. 

It heard from, among others, Public Enterprises Minister Pravin Gordhan, who said his department had spoken to the Auditor-General.

"The Auditor-General said, given the business rescue status of SAA, they had not conducted any audits. So, we have to go back to the Auditor-General to find out what the process would be once SAA is out of business rescue to see how financials could be made available," said Gordhan.

Meanwhile, the airline's rescue practitioners said they hoped to be able to exit the rescue process in a few weeks, while Scopa chair Mkhuleko Hlengwa said that audited financial statements would enable SAA to learn from past mistakes. 

Unlike SAA, its subsidiaries are not in business rescue. The DPE is hoping that Parliament will allow a special allocation of R2.7 billion for SAA’s subsidiaries from the R10.5 billion allocated to SAA in last year’s mini budget.

- Additional reporting by Carin Smith 

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you 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.
Subscribe to News24
USD/ZAR
14.61
(0.0)
GBP/ZAR
20.02
(0.0)
EUR/ZAR
17.37
(0.0)
AUD/ZAR
11.13
(0.0)
JPY/ZAR
0.13
(0.0)
Gold
1,743.98
(0.0)
Silver
25.25
(0.0)
Platinum
1,204.50
(0.0)
Brent Crude
62.95
(-0.4)
Palladium
2,641.93
(0.0)
All Share
67,191
(+0.2)
Top 40
61,459
(+0.3)
Financial 15
12,123
(+0.8)
Industrial 25
87,544
(+0.1)
Resource 10
68,608
(+0.2)
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1240 votes
No, I did not.
52% - 3096 votes
My landlord refused
28% - 1669 votes
Vote