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SA Express assets value decreases from R1.8 billion to R130 million, liquidators reveal

SA Express
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The assets value of regional airliner SA Express has decreased from R1.8 billion to R130 million in five weeks. This is according to the airliner’s liquidators in a virtual briefing to Parliament’s Standing Committee on Public Accounts (SCOPA) on Wednesday.

The liquidators appeared before SCOPA to brief it about the airliner’s liquidation process. The liquidators took office last month to start the process of disposing of the assets of SA Express.

After failing to appear before a virtual meeting with SCOPA last week, the liquidators met with the committee during another virtual briefing. One of the questions that leading liquidator Aviwe Ndyamara had to answer related to the value of the assets of SA Express.

“When we took office the estimated assets were quantified at R1.8 billion. This past five weeks in light of the COVID regulations to an amount to be quantified at this stage to R130-million. So there is a significant difference. So, what asset are we dealing with now, if we have to dispose of the asset, what value are we talking? We are sitting at R130 million and we are still busy reconciling. We do have challenges in terms of reconciliation, in terms of what is in the books, in records, and what is physically there that vests with SA Express.”

Tough questions 

The liquidators and the Department of Public Enterprises faced critical questions from members of SCOPA including Committee Chairperson Mkhuleko Hlengwa and the Economic Freedom Fighters’ Veronica Mente.

“So there is a company lighthouse who has full access to the aircrafts, repairing the aircrafts, so if you have a party that has access to your stores, that has access to your aircrafts and everything – that can devalue the company assets because people can steal things. I do not know the logic behind that,” said Mente.

Hlengwa said: “You need to clarify us extensively. You seem to be still at investigating stage at everything and trying to ascertain a lot of things because that should form part and parcel of the work that you are doing. But what it indicates to me is that you may be saddled with a situation of poor record-keeping which you have found in the institution if you are taking such a long time to arrive at a factual conclusion.”

Take over of SA Express

Meanwhile, the Democratic Alliance Member of SCOPA Alf Lees had more questions about the interest of the seven interested parties that might want to take over SA Express.

“With regard to these seven interested parties, who are they, what are they looking for. Are they looking for just the licenses? Are they looking to take over the airliners as a whole including its liabilities? Are they looking to take over the airline, – excluding the liabilities guaranteed by the government? What exactly are they looking for?”

The African National Congress’ Meryn Dirks still fails to understand why SA Express has to undergo a liquidation process.

” I want to hear that somebody from the department can come to the public platform and tell South Africans in plain and simple English what brought us to where we are today that brought us to this liquidation, because this asset belongs to the public, to the millions of South Africans there.”

While the Department and the liquidators answered some questions, many still remain unanswered. SCOPA has also decided to have further engagements with the stakeholders at another time.

Payment of outstanding salaries 

SA Express workers are braving the cold this afternoon – protesting outside the offices of the Department of Public Enterprises in Pretoria. This is the second such demonstration in as many weeks.

The workers want a response from the Presidency on the payment of outstanding salaries. They handed over their demands to the Presidency two weeks ago.

In the video below, SA Express employees demand payment of salaries: 

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