Scopa, Public Enterprises Committee to monitor SAA after failure to submit financial statements

The Standing Committee on Public Accounts (Scopa) and the Portfolio Committee on Public Enterprises remain concerned about the problems that the South African Airways (SAA) is facing.

The joint committee said they would “keep a close eye” on the airline after the SAA failed to submit annual financial statements.

The committee’s media officer, Faith Ndenze, said in a statement: “The committees understand the consequences related to premature exposure of the annual financial statements, but want to stress the urgency of the need to know what has led SAA to be in the position it is in currently.”

Ndenze said SAA last submitted their financial statements in 2016/17, which has put both committees in the dark.

She also said the committees had raised the issue of parliament having to closely consider section 65.2 of the Public Finance Management Act (PFMA) in order to bypass entities from exploiting this section when wanting to circumvent the law.

“This is largely due to the fact that the SAA business rescue practitioners have cited that they are complying with section 65.2 while failing to comply with section 65.1 of the PFMA,” said Ndenze.

At the end of the three months’ period that SAA’s business rescue practitioners require for establishing its plan and presenting it to the creditors, the committees will set a date after 6 March to request the rescue team to appear in parliament and answer to all the issues that are outstanding where the airline is concerned.

“All roadmaps that are necessary will arise after that interaction with the business rescue practitioners.

“The realities of the business rescue process have set into motion a new dynamic to oversight, therefore the committees will give the business rescue practitioners space and time within the prescribed time of 90 days, which expires on 6 March 2020, to complete their work.

“This matter between SAA (with a particular reference to the business rescue practitioners) and parliament is work in progress,” she concluded.

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