SAA has lost over R10bn since 2018, hears parliament

SAA financial statements presented before parliament’s standing committee on public accounts (Scopa) have revealed that SAA made losses of R5.5 billion in 2018 and R5.1 billion in 2019.

The government-funded airline has been in a state of business rescue since December last year.

Public enterprises minister Pravin Gordhan and business rescue practitioners are expected to appear before Scopa on Friday afternoon, where the financial statements will be discussed.

The government is currently considering a number of options for the airline, including starting a completely new carrier free from SAA debts.

“What this shows is that the multibillion-rand bailouts by government over the years have failed to cure the ills of the badly run airline,” said Alf Lees, DA member of Scopa.

Lees said he planned to ask Gordhan at the meeting to cancel any plans he may have for a new airline unless he made it clear that it would be privately owned and not state-funded.

“The South African taxpayer does not deserve to be saddled with another state-funded airline when evidence clearly shows that it will also be another fiscal drag just like its predecessor,” Lees said.

Finally DRAFT SAA financial statements for 2018 & 2019 were tabled at SCOPA this evening. Losses of R5,5bil in 2018 & R5,1bil in 2019! pic.twitter.com/iXDv8DxJLg

— Alf Lees (@SquireLees) May 14, 2020

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