Share

SAA provisional report leaves more questions than answers – MP

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. 

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.1%
Rand - Pound
23.92
-0.0%
Rand - Euro
20.42
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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