SAA has finally tabled its audited financial statements for the fiscal year 2017/18 in Parliament this week.
SAA stresses that the figures included therein are historical and are not indicative of the airline’s current financial performance. The numbers reflected in the financial statements are as a result of business activities that took place under business conditions that existed at the time, more importantly under executive management and board that was in office then.
The statements for 2017/18 are being released three years later because at the time they were due to be released, auditors withheld their audit opinion due to the company’s significant going concern risk at the time, which later resulted in the company being placed in business rescue. We are all aware that SAA was subsequently placed in business rescue effective 5 December 2019 and exited the business rescue process on 30 April 2021.
Three years on, SAA’s entire operation has now been restructured with a reduced staff count and fleet size. This is intended to leave the organisation better positioned for the future.
According to SAA, ‘South Africans should note that at the tail end of the business rescue the currect interim executives and interim board comprising of independent professionals were appointed to lead the organisation as it completed the restructuring, resumed flight operations and the shareholder embarked bringing on board a strategic equity partner.’
Interim Chief Executive Officer, Mr Thomas Kgokolo says, “The conditions that led to the business rescue process cannot be repeated and the airline is confident that various measures put in place will prevent this happening.”
SAA resumed flying in late September 2021.
The release of the 2017/18 financial statements is just one step as the remaining three years financial statements will be released in future once the audit gets underway and completed through the Auditor General’s Office