Parliament� The Standing Committee on Public Accounts (Scopa) is concerned with the lack of record keeping at the South African Airways (SAA) as a result of former employees who left with files containing critical information now needed for forensic investigations. This is contributing to the challenges currently facing the airline.
Scopa realises that further engagements with SAA are required due to the number of challenges plaguing the airline. Over and above the loans of R8,9bn and liabilities of R17,8bn, the airline also has fruitless and wasteful expenditure of R46m. All this is an indication that a lot of work is required to assist this entity.
The committee would also like SAA to urgently curb losses, currently running at over R5bn. SAA management should focus on areas of high expenditure that are cost drivers. Scopa has also asked SAA to look at the institutional arrangement of SAA Technical and Air Chefs, and consider whether they should be entities with their own Boards or merely divisions within SAA, as they are some of the biggest contributors to the challenges facing SAA. The committee has also requested the management of SAA to look at the issue of evergreen contracts and the problems associated with such contracts.
Source: Parliament of the Republic of South Africa