The State Capture Commission in Parktown, Johannesburg, has heard that the Office of the Auditor-General did not notice any red flags when South African Airways (SAA) asked it to extend the services of auditing companies PWC and Nkonki auditors.
The two firms were linked to allegations of unprofessional, unethical and criminal activity linked to some senior individuals at the firms. In 2011/2012 financial year, the Auditor-General opted not to perform auditing at SAA.
SAA then consulted with the Auditor-General to appoint PWC and Nkonki auditors. Business Executive in the Auditor-General’s office Polani Sokombela explains.
“The Auditor-General conquered in writing for a one-year appointment. There were no issues of concern that were identified. From 2011/12, 2012/13, 2013/14 financial year and 2014/15, SAA requested the concurrence of the Auditor-General. I must say the Public Audit Act was a new legislation and the issue of concurrence has grown and matured,” says Sokombela.
SAA has been in financial problems for the last couple of years.
Below are some of the big issues affecting the troubled airline:
