WASTEFUL EXPENDITURE
KHAYA SITHOLE: Lack of accountability crash-lands SAA
Given that SAA is on its seventh turnaround strategy, it is difficult to imagine a change in its fortunes
One of the most important clauses in our Constitution is found in section 59(2). This guarantees public access to the sitting of parliamentary committees unless it is reasonable and justifiable to exclude them. Last week, there was a strange series of events when committee members wanted a presentation by SAA (South African Airways) to be held in secret because some of the information contained in the presentation was considered commercially sensitive. Unable to reach a consensus, the meeting was abandoned without the presentation being made. Later on, sense prevailed when the Treasury intervened and made the disclosures public. Sadly, the picture painted by the financial statements is even more dire than expected. SAA’s projected losses ballooned to R5.7bn for the 2017 financial year. The reasons advanced for this – fewer passengers and a strong currency – are fundamental business risks for an airline that should be tackled and contained. Given that SAA is on its seventh turnaround...
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