SA Parliament: Committee Urges Government and SAA to Work Together to Stabilise Entity
31-Aug-2016 The Standing Committee on Finance has, once again, expressed its concern about the state of South African Airways (SAA). The Committee calls on the National Treasury, the Presidency and SAA to cooperate effectively to stabilise the entity in the national interest.
"We also urge the National Treasury to ensure that SAA's 2014/15 Annual Report and Annual Financial Statement are tabled in Parliament by 15 September. This matter has dragged on for an unacceptably long time. However, should the report not be tabled by 15 September, the Committee will still go ahead with its scheduled meeting with National Treasury and SAA on 20 September," said Mr Yunus Carrim, the Chairperson of the Committee.
The Committee urges that a new Board be appointed as soon as possible at the SAA, in light of the fact that the current Board is interim. "We further believe that the SAA management should also be strengthened considerably as soon as possible. Our view is that the structural constraints SAA confronts in the aviation industry need to be addressed and a consensual as well as effective turnaround strategy needs to be forged and rigorously implemented," said Mr Carrim.
The Committee is also concerned about reports that SAA could be deregistered in Hong Kong if its annual financial statement is not finalised by 6 September. It has also noted the implications of the SAA advert seeking to raise R16 billion in the market, and is presently engaging the relevant stakeholders to look into the possibility of a meeting with National Treasury and SAA before the 20 September to deal with these specific issues.