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Airlines fail to submit audited reports

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“Both airlines are experiencing serious financial challenges and are unable to meet going concerns.”

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South Africa’s cash-strapped state-owned airlines have failed to submit audited annual reports to Parliament by the September 30 deadline.

In a letter published in the announcements, tablings and committee reports (ATC) yesterday, Public Enterprises Minister Pravin Gordhan informed the legislature that both South African Airlines (SAA) and South African Express (SAX) were unable to meet their going concern status.

“The Boards of South African Airways SOC Limited (SAA) and South African Express Airways SOC Limited (SA Express) have not been able to finalise and submit the annual reports to me within the PFMA prescribed timelines,” Gordhan said in the letter, dated September 27.

“Both airlines are experiencing serious financial challenges and are unable to meet going concerns.”

Gordhan said the SAA board had informed him that the newly appointed interim chief executive and chief financial officers have requested more time to submit their financials to the Auditor-General of SA’s office.

The minister said SAA had submitted a request for an extension to hold its annual general meeting to the Companies Tribunal, which had been granted.

Gordhan said the financials statements and audit reports of both airlines will be submitted once the going concern status of both airlines is resolved.