SCOPA wants proper breakdown of SAA financials

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Parliament’s Standing Committee on Public Accounts (SCOPA) says it wants a proper breakdown of how the money given to South African Airways (SAA) in the past five months since it was placed under business rescue, was spent.

SAA went under business rescue late last year with Les Matuson and Siviwe Dongwana appointed as the business-rescue practitioners [BRPs].

The BRPs have until the 26th of May to finally submit their business rescue plan.

However, they say without further funding the best option forward would be winding down the national carrier.

Last month government denied the BRP’s request for R10 billion in funding.

SCOPA Chairperson, Mkhuleko Hlengwa, says in documentation received there is over 20% of the funding that is unallocated.

“We’ve spent R10 billion over the past 5 months on SAA on salaries and all sorts of other things and we actually now want a further breakdown. Because about 26%/28% of that is classified as others and we do not know what that is. So we need to zoom into those finances. On the 26th of May, they must submit their final road map with timelines and deadlines in terms of when they will submit,” adds Hlengwa.

“Otherwise we will have to explore other options and we will of course be consulting with parliamentary legal services in so far as how we tie it down on on this thing so that we actually provide certainty,” he explains.

New airline to be formed

Government said it will be starting up a new airline to replace South African Airways (SAA).

During his address last week, Public Enterprise Minister Pravin Gordhan said the formation of the new airline was still a working in progress.

SAA has been in business rescue since December.

The airline has been depending on government bailouts.

In the video below, Public Enterprises Minister Gordhan briefs SCOPA on SAA, SA Express