17-May-2018 2:23 PM

SA Express 'on the verge of collapse': Parliamentary Committee

South Africa's Parliamentary Portfolio Committee on Public Enterprises stated (16-May-2018) it is of the view that SA Express "is experiencing serious financial challenges, as it is unable to meet its financial obligations and pay its bills on time". The committee was briefed on the airline's FY2017/18 report and noted "with concern" that the airline was unable to table its FY2016/17 report before parliament in 2017. The committee also expressed concern over the airline's failure to have its annual and financial reports signed off by the Auditor-General and criticised the carrier for its failure to address operational challenges. The committee said the FY2017/18 briefing demonstrated that "the airline is on the verge of collapse". Committee members mandated chairperson Lungi Mnganga-Gcabashe to discuss with Minister of Public Enterprises Lynne Brown the possibility of a cash injection for the airline from the National Treasury. The committee called for SA Express to strengthen its governance, monitoring and evaluation and Ms Mnganga-Gcabashe said: "If the airline requests a capital injection from National Treasury, the committee needs a guarantee that we are not reinforcing maladministration, fraud and corruption". [more - original PR]

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