SENIOR SOUTH AFRICAN MP BLAMES GOVT, ANC FOR DETERIORATION IN NATIONAL AIRLINE’S FINANCES

CAPE TOWN– A senior ruling party member of Parliament has blamed the government and the African National Congress (ANC) for the current state of finances at national flag carrier South African Airways (SAA).

Yunus Carrim, who is the Chairperson of Parliament’s Standing Committee on Finance, said Tuesday that it was an indictment on both the ruling ANC and the government that SAA’s finances had deteriorated to the level that they are at currently.

The airliner on Tuesday presented its third quarterly report for the period ended December 2017, which paints a bleak picture of a declines in domestic, regional as well as international sales.

Carrim blames government for the demise of the airline under former SAA board chairperson Dudu Myeni.

I think it’s a severe indictment on government and the ANC that we allowed this board that was there to be there in the first place,” he said.

“So the problem is not SAA, the problem is government which appoints the board who has some say on the framework with which the board appoints senior management.

“We need the ANC to provide guidance to Government because quite frankly what has happened over the last few years is unacceptable; it is not fair on the current team which has to pick up SAA below the barrel.

(Eds note: SAA, which holds its annual general meeting on Thursday, has reported a 3.7-billion-Rand (about315.6 million US dollars) loss for the nine months to Dec 31, 2017S 71 per cent higher than the budgeted 2.2-billion Rand loss, as a result of lower revenue and higher operating costs caused by higher fuel costs.

SAA has forecast a loss of 4.8 billion Rand for the 2017-18 financial year as well as in the 2018-19 financial year but sees a sharp improvement in the 2019-20 financial year as the effects of its long-term turnaround strategy kick in. SAA foresees a return to profitability in 2021.)

Source: NAM NEWS NETWORK