Gateway Airports Authority Limited (Gaal) is facing financial troubles and had to borrow money from Provincial Treasury to pay salaries for two previous months.
It was learnt when the entity appeared before the Standing Committee on Public Accounts (Scopa) yesterday (Wednesday) that monthly salaries for employees at the entity amounts to R2,6 million. Transport and Community Safety Head of Department, Hanli du Plessis divulged that the entity had borrowed R5,2 million from Provincial Treasury, seemingly to assist with February and March salaries.
Scopa committee member Jossey Buthane said some service providers were not paid to which Du Plessis responded by saying that the entity allocates funds the wrong way and appoint service providers without a budget. Although the entity falls under the Department of Transport, MEC Makoma Makhurupetje made a statement that raised eyebrows: “I only learnt about the entity’s financial troubles during the Executive Council (Exco) Budget Lekgotla and I was told that the entity board approached Treasury without communicating with me.”
Board Chairperson Tom Nkoana emphasised that the entity’s financial difficulties were due to accruals from previous financial years amounting to R11 million. He confirmed that the entity was in financial distress but stressed that they had managed to pay employees after the intervention of the department. Read full story in next week’s edition.
Story: ENDY SENYATSI
>>endy@observer.co.za
