Parliament must not entertain South African Airways’ request to further delay producing its 2014/2015 financial statements‚ which are long overdue and were meant to be tabled in Parliament on September 30‚ 2015‚ the Democratic Alliance says.
DA spokesperson on public enterprises Natasha Mazzone said it was concerning that SAA had already been granted two extensions – the deadline for the first one being January 15 2016 which it had missed and the other being for February 16 which it had also missed.
“SAA have now delayed producing their financials by over four months and are now requesting to deliver the financials by March 15‚ 2016. The application for the extension by Minister of Finance‚ Pravin Gordhan‚ has been put to the Speaker of National Assembly‚ Baleka Mbete‚ who will decide on this. The DA will make a stern plea to Ms Mbete to reject the extension request‚” Mazzone said.
She said the extension had been requested due to the airline’s financial challenges and the company’s external auditors’ concerns regarding its going concern and liquidity position.
“SAA have applied for a going concern guarantee in December 2015‚ which they are still waiting to hear from.
“This is unacceptable and the DA will insist that the financials be presented to Parliament and that the Speaker reject this application as all eyes are focused on SAA’s financial performance with expectations of a further government guarantee required. The Treasury confirmed recently that it has given R14 billion to SAA in guarantees over the last 15 years‚” Mazzone stated.
She added that SAA had proven unprofitable and had become a “fiscal black-hole into which billions of taxpayer Rands have been ploughed with no results when in fact this money could be better spent on creating jobs and generating economic growth”.
“Government must now get its priorities right and pool what little resources we have to creating jobs and making SAA a profitable SOE (state owned entity) so that our economy is boosted and jobs are created.
“To date SAA has had several boards and more than five turnaround strategies; all proving fruitless. It can no longer be tenable for the state to be the primary custodian of a national carrier that has become Chairperson of SAA‚ Dudu Myeni’s fiefdom that just haemorrhages money.
“The DA again calls for the privatisation of SAA‚ which is now becoming the tune that government is starting to sing after years of pleading‚” Mazzone said.
“Minister Gordhan must follow through swiftly with his plans to appoint a new board. In so doing‚ the Minister must remove Zuma’s confidante‚ Chairperson Myeni‚ who has overseen and interfered with SAA for far too long‚ showcasing financial mismanagement and poor leadership.
“In this‚ the DA re-iterates its calls for SAA to be privatised and release the burden on the already downtrodden South African economy‚” Mazzone added.
Reject SAA request for extension on financial statements‚ DA urges
DA spokesperson on public enterprises Natasha Mazzone said it was concerning that SAA had already been granted two extensions – the deadline for the first one being January 15 2016 which it had missed and the other being for February 16 which it had also missed.
“SAA have now delayed producing their financials by over four months and are now requesting to deliver the financials by March 15‚ 2016. The application for the extension by Minister of Finance‚ Pravin Gordhan‚ has been put to the Speaker of National Assembly‚ Baleka Mbete‚ who will decide on this. The DA will make a stern plea to Ms Mbete to reject the extension request‚” Mazzone said.
She said the extension had been requested due to the airline’s financial challenges and the company’s external auditors’ concerns regarding its going concern and liquidity position.
“SAA have applied for a going concern guarantee in December 2015‚ which they are still waiting to hear from.
“This is unacceptable and the DA will insist that the financials be presented to Parliament and that the Speaker reject this application as all eyes are focused on SAA’s financial performance with expectations of a further government guarantee required. The Treasury confirmed recently that it has given R14 billion to SAA in guarantees over the last 15 years‚” Mazzone stated.
She added that SAA had proven unprofitable and had become a “fiscal black-hole into which billions of taxpayer Rands have been ploughed with no results when in fact this money could be better spent on creating jobs and generating economic growth”.
“Government must now get its priorities right and pool what little resources we have to creating jobs and making SAA a profitable SOE (state owned entity) so that our economy is boosted and jobs are created.
“To date SAA has had several boards and more than five turnaround strategies; all proving fruitless. It can no longer be tenable for the state to be the primary custodian of a national carrier that has become Chairperson of SAA‚ Dudu Myeni’s fiefdom that just haemorrhages money.
“The DA again calls for the privatisation of SAA‚ which is now becoming the tune that government is starting to sing after years of pleading‚” Mazzone said.
“Minister Gordhan must follow through swiftly with his plans to appoint a new board. In so doing‚ the Minister must remove Zuma’s confidante‚ Chairperson Myeni‚ who has overseen and interfered with SAA for far too long‚ showcasing financial mismanagement and poor leadership.
“In this‚ the DA re-iterates its calls for SAA to be privatised and release the burden on the already downtrodden South African economy‚” Mazzone added.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos