JOHANNESBURG – South Africa’s state-owned enterprises continue to buckle under pressure.
An auditor general report shows South African Airways (SAA) is still bleeding money.
The airline lost close to R6-billion. SAA says it’ll respond to the auditor general’s report later on Friday.
It suffered losses to the tune of R5,5-billion last year.
A new report by Auditor General Kimi Makwetu shows this is the sixth consecutive loss for the airline.
The company has failed to release its financial statements since last year and has asked for numerous extensions.
This delayed the auditor general’s work for several months as SAA also failed to provide Makwetu’s office with its financial records.
The AG report shows, SAA used incorrect exchange rates when dealing with international transactions.
The airline failed to correctly record its assets and does not have proper records of its technical inventory.
The AG was unable to find records for irregular, fruitless and wasteful expenditure.
SAA understated its maintenance costs by R282-million, its trade and other payables by R226-million.
Provisions were understated by R135-million and trade and other receivables were understated by R148-million.
Makwetu says there were no records for irregular, fruitless and wasteful expenditure.
SAA’s turnaround is among the government’s key priorities.
A new CEO was appointed last year to lead that exercise.
In his State of the Nation address, President Cyril Ramaphosa pledged to review SOEs. This follows years of mismanagement.
SAA is also currently looking for an equity partner to provide cash, to help turn the tide