SAA Postpones Annual Report Submission to Resolve Audit Disputes and Enhance Funding Prospects

South African Airways (SAA), headquartered at Johannesburg O.R. Tambo, has delayed the finalization of its 2023/2024 annual report. This decision is aimed at resolving an undisclosed dispute that could significantly influence the airline’s financial outcomes, thereby striving for an improved audit result and enhanced funding opportunities.

The disclosure was made by Maropene Ramokgopa, Minister in The Presidency for Planning, Monitoring and Evaluation, in a recent correspondence to the Speaker of Parliament. Dated July 26, the letter detailed the reasons behind the inability to present SAA’s annual report, audited financial statements, and audit reports for the fiscal year 2023/24 by the statutory deadline of September 30, 2024. South Africa’s Public Finance Management Act mandates that public entities submit their financial documents to legislators within six months following the fiscal year-end.

Ramokgopa’s letter briefly mentioned a material dispute affecting the fiscal year’s results, though specifics were not provided. Further inquiries with her office revealed that SAA’s management is currently collaborating with the Auditor-General of South Africa to finalize the audits, emphasizing that results will be shared upon completion of the audit process.

Historically, SAA has encountered challenges with timely filing of annual results, primarily attributing delays to a 17-month business rescue operation spanning from December 2019 to April 2021. It was only on November 3, 2023, that SAA managed to finalize and sign off its annual reports for the fiscal years ending in March of 2019, 2020, 2021, and 2022.

Furthermore, ongoing audits from the years 2018/19 to 2022/23 have hindered the implementation of certain recommendations intended to improve audit results. By postponing this year’s financial statement submissions, SAA aims to adopt these recommendations, potentially improving audit outcomes which are crucial as the airline seeks new funding avenues. This need for financial reinforcement is compounded by the failure of privatization attempts with the Takatso Aviation Consortium and the government’s stance against additional state bailouts, underscoring the importance of achieving operational stability through improved financial management and accountability.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com