Parliament, Wednesday, 22 August 2017 – The Standing Committee on Public Accounts (Scopa) is concerned about the lack of public responsibility and accountability at South African Airways (SAA). This is evident in the lack of leadership, which has contributed to the bankruptcy that the airline is facing. SAA management lacks any understanding of the sector and appears to have no idea what it is doing.
The Committee is also concerned about the total lack of contract management at SAA, which has added to the airline’s bankruptcy. Scopa also learned that SAA has a number of costly evergreen contracts that are not managed. SAA management also did not have any information about these contracts, which is shocking. Scopa has asked for a detailed list of all evergreen contracts.
Scopa is also interested in Ernst & Young, which appears to have captured SAA. Scopa wants to see details of all the work done by Ernst & Young for the airline.
The Committee has requested the airline to provide Scopa with reports on all major investigation reports for the past three years, whether complete or still in draft. Scopa also wants a list of all the lounges and offices owned by SAA worldwide, including information on the length of rentals and leases. Scopa has also requested reports from the Internal Audit department of SAA of the last year that were presented before the Audit Committee and the Board. Scopa also wants to understand if losses arise within SAA or its subsidiaries.
Scopa also condemns the fact that SAA has accumulated fruitless and wasteful expenditure in immigration penalties amounting to R6.7m, which is something that can be avoided. This is why Scopa is happy that the Auditor-General of South Africa is auditing the SAA’s books. The Committee is looking forward to the Auditor-General’s report to be released this year.
The Committee has committed to schedule another meeting with SAA as soon as possible after it receives all the reports it has requested. This will assist the Committee to get to the bottom of what is causing all these problems at SAA.
ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF SCOPA, MR THEMBA GODI
For media enquiries or interviews with the Chairperson, please contact:
Name: Ms Faith Kwaza
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Email: fkwaza@parliament.gov.za
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