MANGO'S LEGAL RESPONSIBILITY TO RELEASE ITS RESULTS IN TERMS OF THE PFMA
Johannesburg, 6 November 2012: Against the background of the recent filing for liquidation by 1Time and the debate that has ensued over the role of state-subsidised Mango, Comair Limited has highlighted that Mango, as a separate legal entity from SAA and a State Owned Enterprise, is legally required to publish its financial statements - which has not been done since Mango's inception six years ago.
Comair, which operates kulula.com and British Airways in the local market, is committed to establishing a level playing field in the domestic aviation sector and believes that the funding of Mango with tax payers money partly contributed to the failure of 1Time.
However, Mango's CEO Nico Bezuidenhout stated yesterday that his state-subsidised airline will only reveal its financials, if kulula does so first.
CEO of Comair, Erik Venter responded that Comair, as a listed company on the JSE, releases detailed financial results every six months in accordance with the Companies Act, the rules of the JSE and based on International Financial Reporting Standards.
"Comair has an obligation to reveal its results as a listed company. kulula.com is merely a brand of Comair Limited - it is not a separate company from Comair. AlthoughMango is a subsidiary of SAA, it is a separate company and needs to report as such."
Mango is legally obliged, as a National Public Entity listed under Schedule 2 of the Public Finance Management Act (PMFA), to publish its financials and submit these to government and the general public.
"This points to a bigger question - who is taking responsibility to ensure that SAA, SAX and Mango comply with their legal requirements in terms of the Public Finance Management Act?" says Venter.
Comair is a leading South African aviation company that is listed on the JSE Securities Exchange (JSE: COM). Since 1996 the company has operated the local and Southern African regional services of British Airways for 15 years. Comair also operates Africa's first low fare airline, kulula.com, which celebrated its 10th year anniversary last year. This adventurous brand has since inception revolutionalised air travel in South Africa by making flying much easier and affordable to customers. For more information, visitwww.comair.co.za
Statement issued by Comair, November 6 2012
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