Cape Town - Although SAA was able to submit an abridged and provisional report on its 2014/15 financial statements just in time on Friday, the document leaves more questions than answers, said Alf Lees, DA spokesperson on SAA.
Bdlive reported that although SAA managed to table an abridged and provisional report, it was missing a crucial reporting element — the report of the auditor-general that highlights any deficiencies in the financial management of the company.
Lees said it is significant that certain technical issues were singled out and that these matters could materially change the report.
Bdlive also reported that the airline’s consolidated annual revenue was stagnant at R30bn and a net operating loss of R4.2bn was recorded, with the weaker rand contributing to the decline. Impairments amounting to R1.9bn and finance costs of R490m (R263m the previous year) also affected the bottom line, while savings of R790m were made during the year by cutting costs, adding to the R1.5bn savings of the previous two years.
“I don’t believe the technical issues that were raised would change SAA’s trading loss, Lees said, "but it could alter the way the auditors view the impairments."
READ: Gordhan reveals SAA's financial losses
The ailing national carrier is due to appear before Parliament’s Standing Committee on Finance on Tuesday to answer hard questions about its financial statements.
“What is particularly worrying,” Lees said, “is that irregular and wasteful expenditure more than doubled. There is a bit of spin about how they froze certain positions and cut costs, but their revenue has still come down, which is a big concern.”
Dudu Myeni, reappointed SAA chairperson as well as the executive team, albeit in an acting capacity, are expected to answer tough questions from MPs when they make a long overdue appearance in Parliament.
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