SAA's just-in-time annual reports excludes a crucial element
South African Airways managed to table an abridged and provisional report on its 2014-15 financial statements in Parliament on Thursday - shortly before the expiry of its deadline. The financial statements, however, do not include the critical report of the auditor-general, which will highlight any deficiencies in the financial management of the company.
©ginasanders via 123RF
The board of SAA will be grilled by members of Parliament's finance committee on Tuesday about the management of the airline.
The hearing has had to be postponed several times pending the tabling of the 2014-15 results, which was delayed pending approval by Finance Minister Pravin Gordhan of yet another guarantee, this time of R4.7bn, which brings SAA's total guarantee to R19bn.
In a letter to National Assembly speaker Baleka Mbete, Gordhan said the financial statements were provisional as the auditors had raised certain technical issues which had to be clarified with experts.
Gordhan announced in the National Assembly on Tuesday that SAA had made a R4.7bn loss in 2014-15 and a further R1.8.bn loss in 2015-16.
According to the financial statements, consolidated annual revenue was stagnant at R30bn and a net operating loss of R4.2bn was recorded, with the weaker rand contributing to the decline.
Impairments amounting to R1.9bn and finance costs of R490m (R263m the previous year) also affected the bottom line.
Savings of R790m were made during the year by cutting costs, adding to the R1.5bn savings of the previous two years.
Source: BDpro
Source: I-Net Bridge
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