SAA after Business rescue

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Re: SAA after Business rescue

Unread post by jbayfan » Wed Apr 06, 2022 12:38 am

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Re: SAA after Business rescue

Unread post by FoxTROT » Wed Apr 06, 2022 6:47 am

https://www.travelnews.co.za/article/ho ... icle-title
How SAA showed disdain for compliance


SAA’s financial statements 2017/2018 were presented to Parliament on March 29, three years late. “The 2018 financial results weren’t released before because the auditors withheld their audit opinion, as SAA’s status as a going concern was at significant risk. This resulted in the group being placed in business rescue in December 2019,” said the annual report.

The fact that the SAA Group (comprising SAA, Mango, SAAT and Air Chefs) in that year made a loss of R5,4bn on income of R29,4bn would probably hardly raise an eyebrow among punch-drunk South African taxpayers, especially when viewed against the R35,1 billion in financial support the airline received from taxpayers from April 2018 to November 2021. Only R18,3bn of this amount related to funding for the business rescue plan.

The Auditor-General gave a qualified opinion on the basis of a slew of irregularities in the controls, record-keeping and accounts of the group, which, during the period, appear to have been nothing short of a shambles. His report contained a litany of non-compliance issues, and point to an apparent disdain for controls, records and public accounting procedures.

Some points from the Auditor-General’s report were:

*“Property, aircraft and equipment – the SAA Group did not adequately review the useful lives and residual values and assess the property, aircraft and equipment at each reporting date as far back as financial year 2016) in accordance with International Accounting Standards (IAS) 16…”

*“…some of the property, aircraft and equipment were not recorded in the financial statements, while some were recorded but their existence could not be verified…”

*“Irregular expenditure – Section 55(2)(b)(i) of the PFMA requires the SAA Group to include particulars of irregular expenditure in the notes to the financial statements. The SAA Group did not include all irregular expenditure incurred in the notes to the financial statements…” Inadequate controls and incomplete records of irregular expenditure, meant the full extent was hidden.

*Fruitless and wasteful expenditure – Although the PFMA requires SAA Group to include particulars of fruitless and wasteful expenditure in the notes to the financial statements, these were not included, said the A-G. “As the SAA Group did not have adequate controls to maintain complete records of fruitless and wasteful expenditure, I was unable to determine the full extent of the fruitless and wasteful expenditure note. I was unable to obtain sufficient appropriate audit evidence to confirm the fruitless and wasteful expenditure incurred, as well as the amounts written off included in note 42…”

*“Trade and other payables – I was unable to obtain sufficient appropriate audit evidence that trade and other payables had been properly accounted for, due to the poor status of the accounting records and lack of systems of internal controls for the SAA Group. I was unable to confirm the trade and other payables by alternative means.”

“In addition, the SAA Group did not ensure that bank clearing accounts are reconciled regularly. As a result, transactions that related to trade payables were not cleared out of these accounts, leaving the trade and other payables balance understated and therefore not correctly valued as required by IAS39 Financial instruments: Recognition and measurement.”

*“Inventory – South African Airways Technical SOC Limited (SAAT), an SAA subsidiary, uses an inventory management system to record its inventory. I was unable to place reliance on this system due to the weaknesses in controls in the system…In addition, the existence of some inventory could not be verified…”

*“Maintenance costs – SAAT did not keep proper accounting records for maintenance material. As a result, I was unable to obtain sufficient appropriate audit evidence for maintenance material recorded as maintenance cost in the group consolidated figures…”

*Deferred tax asset and taxation – once again, inadequate systems and controls gave rise to unsupported and possibly inaccurate figures, including in SAA’s tax bill for the period.

*“Investments in subsidiaries – SAA incorrectly assessed its investments in Air Chefs SOC Limited (Air Chefs) and SAAT subsidiaries for impairment at the reporting date, as required by IAS 36, Impairment of assets requirements. This was as a result of an inadequate process to accurately determine the fair value less cost to sell. Furthermore, SAA made use of discounted cash flows and nett asset values as part of their fair value valuation techniques; however, the figures coming from the subsidiaries for these calculations are misstated due to lack of proper systems and controls at the subsidiaries.”

The AG reported he was unable to obtain sufficient appropriate audit evidence for operating lease commitments due to the status of accounting records of Mango.

“SAA provided financial assistance to its subsidiaries without the approval of the shareholder in terms of a special resolution and without considering the solvency and liquidity of the company during the prior years, which was in contravention of section 45 of the Companies Act.”

*“Procurement and contract management – Goods, works or services were not procured through a procurement process which is fair, equitable, transparent and competitive, as required by section 51(1)(a)(iii) of the PFMA…”

*“Consequence management – I was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred irregular expenditure, as required by section 51(1)(e)(iii) of the PFMA. This was due to proper and complete records not being maintained as evidence to support the investigations into irregular expenditure…”
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Re: SAA after Business rescue

Unread post by ASW20 » Fri Apr 08, 2022 12:24 pm

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Re: SAA after Business rescue

Unread post by African Flyer » Tue Apr 12, 2022 12:35 pm

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Re: SAA after Business rescue

Unread post by Mouser » Tue Apr 12, 2022 2:09 pm

Some falling out amongst the rogues it would seem. Gordhan trying to be cute.

https://www.news24.com/fin24/economy/fi ... a-20220412
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Re: SAA after Business rescue

Unread post by Ugly Duckling » Tue Apr 12, 2022 10:35 pm

They know how to keep the focus on themselves :twisted:
Dudu Myeni slaps camera out of journalists hand outside court room of Jacob Zuma trial

https://www.iol.co.za/news/south-africa ... b528035c93
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Re: SAA after Business rescue

Unread post by Volo » Wed Apr 13, 2022 11:39 am

Copied- I am sharing this post that was written by one of the SAA pilots...💔

Today is by far the most regrettable and sad day of my entire flying career.

After serving one of the oldest and greatest airlines in the world, SAA, for almost 40 years as a technician, graduate aero engineer, flight engineer, pilot and training captain with everything I had, working amongst the finest aviators of our time, I am now part of the first ever strike of the South African Airways Pilot’s Association.

In 50 years we have never lowered ourselves to strike!

The politicians of today, by greed and a grossly vindictive mandate, have attempted to get us to the point of starvation and hopelessness.

All because we stood as professionals and would not tolerate the mismanagement or blatant theft from our airline.

We were not the cause of SAA’s demise; we flew with pride and professionalism.

Carrying millions of passengers safely and efficiently through extreme weather conditions, tough approaches, emergencies and technical challenges. We never waivered, having been soundly mentored and trained to the highest levels of competence and safety.

To what end? Because we cared and knew that our passengers deserved the best.

I’m sad because SAA will never rise to this challenge again. I must move on and leave it all behind.

Here’s to my colleagues, brothers and sisters in the airline, the cabin crew, technicians, fleet support officers, performance specialists, dispatchers and technicians; all of whom made us a family of SAA - all proud professionals in their own right.

South Africa, your airline was great and the “SPRINGBOK” call sign was transmitted with pride everywhere in the world.

It’s legacy will live on although it will ring hollow now when it is heard coming from the ghost of its former self.

We must move on with our lives and leave our once proud SAA to those who will, no doubt, use it to meet their own personal agendas.

I am proud to declare that SAA did not fail due to anything I was responsible for.

Although it breaks my heart that I will never fly for my country again, I bow out as a Senior Training Captain with every good memory of this glorious National Airline as it was.

“Good night “Springbok”.

Captain Clark, we salute you and your glorious crew. The SAA will never again be the same, never.
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Re: SAA after Business rescue

Unread post by jimdavis » Wed Apr 13, 2022 2:46 pm

Volo, when was that written?

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Re: SAA after Business rescue

Unread post by JSB » Wed Apr 13, 2022 2:51 pm

jimdavis wrote:
Wed Apr 13, 2022 2:46 pm
Volo, when was that written?

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https://www.sapeople.com/2021/04/03/saa ... springbok/

1 year ago
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Re: SAA after Business rescue

Unread post by Volo » Wed Apr 13, 2022 3:21 pm

jimdavis wrote:
Wed Apr 13, 2022 2:46 pm
Volo, when was that written?

jim
....................
Jim - That was a year ago but felt it should be repeated
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Re: SAA after Business rescue

Unread post by southside » Sun Apr 17, 2022 7:58 pm

Were they (read us) not losing like 4 million bucks a pop on the direct JHB-Beijing route back in the 2010-2015 era? The pilots told the powers that be that this direct route was a terrible idea, and offered better alternative, more economic options.

Nope, it had to be direct they said.

They (read us) are still losing bucks.

Very easy to just carry on kicking the can when you spend the public’s purse and not your own.

How have they just been quietly carrying on for this long after re emerging? Where are the bucks coming from?

This entire thing is just beyond criminal and stinks to high heaven.

If I were the owner of a private airline in South Africa and saw SAA taxi up along side my aeroplanes, my moer meter would go through the roof.

The Springbok should be slaughtered. Too bad we could not enjoy it on a spit braai as load shedding hits, as it’s rotten to the core.

The sad but tragic truth, is that our beautiful country of South Africa was diagnosed with cancer in 1994. Since then, it has slowly eaten away at the various organs that run the country.

What’s left now is a battered, tattered and bruised country, while the cancer continues its rampage.

The prognosis is bleak, more than likely the country will succumb and perish.
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Re: SAA after Business rescue

Unread post by Volo » Sun Apr 17, 2022 10:13 pm

Depending on who you believe there are at least 30 billion reasons why SAA should not exist and 29.99 billion of those are Rands that the airline has run through over the years , however there are a few more that in themselves should have been enough to shut them down permanently.

1. The whole organization of their new regurgitated Airline is founded on racist policies toward their employees in defiance of the South Africa's constitution.
2. SAA has not been liquidated and as such has reneged on their legal obligations to their creditors.
3. They sold out their subsidiary Mango and have shown no moral obligation to compensate their employees.
4. The government that owns this entity is not above forcing certain government institutions like the Government pension funds to cough up to the tune of R3 billion rand to rescue the airline that no one is expecting to yield a return and more than likely will be lost.
5. The drive by government is so great that to achieve its political aims it will continue to pump money in to what everyone knows will be a commercial failure. They are even budgeting for billions in losses.
6. The Delusions of Grandeur that government have about their political status in Africa has clouded their collective judgment.
7. The availability of SAA to the government as a useful tool to lead their parties and delegations where ever they want to go has already shown itself with President taking an entire plane load of apparatchik's to Doha last month and a couple of plane loads of starving Cubans somewhere.
8. They also see nothing wrong about lying to the South African public about their so called sale to private enterprise which in practice is never going to happen.
Last edited by Volo on Mon Apr 18, 2022 9:05 am, edited 1 time in total.
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Re: SAA after Business rescue

Unread post by jimdavis » Sun Apr 17, 2022 10:21 pm

southside wrote:
Sun Apr 17, 2022 7:58 pm

The prognosis is bleak, more than likely the country will succumb and perish.
Right now I can't think of a better place to live. North America - I don't think so. Canada is crumbling into a commie state. Europe - no thank you with the threat of nukes. Oz - been there - no thank you. South America - not really.

South Africa is not too bad when you consider the options.

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Re: SAA after Business rescue

Unread post by Ugly Duckling » Mon Apr 18, 2022 8:13 am

If they can pay 15 million for these 2 statues of Winnie the Pooh and Oliver who can't twist then you get to see that there is no comprehension of the value of money

https://opera.news/za/en/culture/amp/ec ... 31bf196411
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Re: SAA after Business rescue

Unread post by Airwayfreak » Mon Apr 18, 2022 2:35 pm

Ugly Duckling wrote:
Mon Apr 18, 2022 8:13 am
If they can pay 15 million for these 2 statues of Winnie the Pooh and Oliver who can't twist then you get to see that there is no comprehension of the value of money

https://opera.news/za/en/culture/amp/ec ... 31bf196411
Are you serious ? Looks like a failed kindergarten playdoh project
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