SAA Nets R1.38 Billion Loss, DA Faults ‘Zuma’s Dudu’

Advertisement

President Zuma’s improper and intimate relationship has rendered him incapable of making the right decision about SAA (South African Airways).

That, is why SAA directors continue to make reckless trading decisions, asserts the Democratic Alliance (DA) party.

DA’s sentiment follows the report that SAA incurred a net loss of R1.38 billion in the first quarter of this financial year.

Read Also: Long Live President Zuma! His Govt Has Spent R1 Trillion To Develop SA Infrastructures 

Although SAA is yet to release a financial statement since the 2013/14 annual report it published in January last year, a Business Day report indicated that the media outlet got hold of SAA’s quarterly report for the current financial year.

“The report contradicts Myeni’s assertions in an interview on eNCA last week, in which she said SAA ‘was starting to see the money’.

… (it) shows SAA is behind on the targets of its turnaround strategy.



The company has made a loss every year since 2012. The size of the losses of the past two years have not been made public, as the financial statements have not been tabled,” read an excerpt from the Business Day report.

As learnt, SA Airways reduced the losses it incurred by cutting its salary packages.

Also, it cancelled loss-making routes like Beijing and Mumbia to manage the losses. The routes reportedly caused a R480 million loss in a year.

Zuma’s Intimate Relationship Crippling SAA

DA said President Zuma has no other option but to allow the Minister of Finance take action. Pravin Gordhan must place SAA under supervision. He must begin Business Rescue proceedings, charged the opposition party.

See Also: Zuma Vehemently Denies Affair Saying – ‘I’m Not Having Any Love Affair With Dudu Myeni’

“It is clear that President Zuma cannot be relied on to make the right decision when it comes to SAA. (He) has allowed his improper and reportedly intimate relationship…to hinder Gordhan from making sound financial decisions when it comes to SAA .

It is clear that there are no bounds to the extent that the SAA board and Chairperson, Dudu Myeni, will go to enrich connected ANC cronies at the expense of the South African taxpayer,” DA wailed.

Topics: