Scopa welcomes decision to turn down SAA for extra funding

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Scopa welcomes decision to turn down SAA for extra funding

South African Airways. Image: Shutterstock

The committee believes that SAA can not carry on requesting bailouts from the federal government whereas refusing to desk financials on how the bailouts had been getting used.

The Standing Committee on Public Accounts (Scopa) welcomed the decision by Minister of Public Enterprises, Pravin Gordhan to turn down the request from the South African Airways (SAA) enterprise rescue practitioners for R10 billion in extra funding.

“Scopa believes that the decision taken by the minister is appropriate as SAA can not need its cake and eat it,” the committee stated in an announcement on Wednesday.

The committee stated the airline had handicapped oversight, regardless of one of the best efforts of the committee to maintain the airline accountable, by insisting on solely tabling monetary statements as soon as the enterprise was a going concern.

“This sort of reasoning in itself is irregular because the airline can’t be allowed to sanitise its steadiness sheet and solely submit financials when it’s handy for it to achieve this.”

The committee added that they believed that SAA couldn’t carry on requesting bailouts from the federal government whereas refusing to desk financials on how these bailouts had been getting used.

“This poses a problem when it comes to oversight over the general public purse and runs a danger of making a damaging precedent for the state.

“Questions nonetheless stay unanswered with regard to the R3.5 billion mortgage from the Development Bank of Southern Africa (DBSA) that was given to SAA in January this yr.”

The committee additional stated that the mortgage was granted within the absence of clear info on the monetary scenario of SAA.

They stated the committee held quite a few conferences with each SAA and Gordhan on the matter and believed that the airline had reached the top of its rope.

“It is unlucky that the actual casualties of this example would be the staff of the airline who’re pressured by this example to be unemployed.”

On Wednesday, the Economic Freedom Fighters (EFF) slammed the “deliberate collapse” of the airline.

In an announcement, the EFF blamed the collapse on Gordhan, who was accused of making an surroundings of fiscal uncertainty and “arrogantly” dismissing advisory measures offered by appointed enterprise rescue practitioners.

For extra information your method, Orignaly Published on https://citizen.co.za  and 

live at 2020-04-16 14:56:33

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