SCOPA views failure to meet deadline by SAA in a serious light

23 November 2019

On Wednesday, 13 November 2019, the Standing Committee on Public Accounts (Scopa) held a hearing into the failure of the South African Airways (SAA) to submit 2017/18 and 2018/19 financial statements and annual report to Parliament as per the prescripts of the law.

The committee views this non-compliance in a very serious light and with grave concern hence it scheduled a hearing. The committee was not entirely satisfied with the reasons provided by SAA for their failure to submit the two sets of financial statements. 

The committee then directed that SAA should submit the legal opinion and other documents which influenced their failure to submit the financial statements by no later than 12h00 last Wednesday, 20 November 2019. Despite further communication the committee made on 21 and 22 November 2019 reminding SAA to submit the documents, the committee has not received those documents. 

The committee requires the documents to prepare for the meeting it has scheduled for Wednesday, 27 November 2019 with SAA, the Auditor General (AG), Department of Public Enterprises and National Treasury which is aimed at developing a roadmap for the submission of the outstanding set of financial statements. 

The failure by SAA to submit this simple information places the committee in a difficult position as parliamentary legal services is unable to study the documents in order to assist and advise the committee to make informed decisions.

The committee finds this total disregard of parliamentary processes by the SAA unacceptable as the conduct of the SAA Board and management undermine Parliament. Furthermore, the committee will not allow SAA to willy-nilly determine its own rules for accountability.

The committee was very clear to SAA that the process that was set into motion was without precedence, but was one which demonstrated Parliament’s commitment to finding lasting solutions to SAA problems. 

Also, the committee frankly told SAA that should they fail to comply with this process, the committee will be compelled to develop its own roadmap which would have very serious implications for SAA. According to the committee, SAA is clearly not engaging in good faith with Parliament as they keep shifting the goal posts.

The committee will continue with the planned meeting of Wednesday, 27 November 2019 with or without SAA’s cooperation as it cannot allow Parliament to play a second fiddle role to SAA’s self-regulation wherein the entity wants to define itself outside the law, and in the process undermines Parliament.

Issued by Faith Ndenze, Media Officer, Parliamentary Communication Services, 23 November 2019