Gaal likely to collapse without Govt help

Material uncertainty that exists at Gateway Airports Authority Limited (Gaal) allegedly threatens the closure of the entity in the foreseeable future.
This was highlighted in a budgetary review and recommendation report presented by the Office of the Auditor-General (AG) to the Portfolio Committee on Gaal at Parliamentary Village on Tuesday. Key concerns identified at the entity include the fact that Gaal received a bail-out of R5,2 million to assist with payment of salaries for February and March, the institution recording a net loss of R12,8 million while current liabilities exceed assets by R17,5 million.
A report revealed that irregular expenditure amounting to R13,5 million was incurred in the current financial year as a result of the contravention of supply chain management legislation and an amount of R15,2 million incurred in losses in the previous financial years was identified in the current year.
The entity received a qualified audit opinion for the previous financial year with fruitless and wasteful expenditure amounting to R102 000. The AG report has recommended that political and administrative leadership should ensure speedy appointment of the chief executive officer and implement cash containment strategies.
Provincial Treasury Director for Norms and Standards, Malerotho Mphahlele indicated that the entity is failing to sustain itself hence it might collapse without a budget from Provincial Government. He said Gaal does not have an act to guide the entity and also added that private partnership was needed to sustain the institution.

Story: ENDY SENYATSI
>>endy@observer.co.za