South African Airways and SAA Technical have received disclaimed audits for the sixth successive year, with opposition parties demanding an independent forensic investigation into the national carrier’s finances and governance.
The Auditor-General’s report to Parliament revealed that both entities failed to provide sufficient evidence to back up their financial statements, and that record keeping is so poor that the AG cannot determine how significantly misstated SAA’s finances are.
The Democratic Alliance has written to Minister of Transport Barbara Creecy demanding the immediate appointment of an independent forensic audit and a full explanation for the recent resignation of CEO Dr John Lamola and several board members.
Dr Chris Hunsinger, DA spokesperson on transport, said SAA’s systems to detect irregular expenditure and losses from criminal conduct are inadequate. “Investigations and cases pertaining to financial misconduct went unreported,” he said.
The airline received R38 billion from the fiscus between 2018 and 2024, and R133 billion since 2000.
While SAA claims to be profitable, its operations lost R472 million in the 2024/25 financial year. Only the sale of its landing slot at London Heathrow airport kept the entity in the black. Without this asset sale, SAA would have lost roughly R1 billion.
Minister Creecy confirmed the Heathrow transaction during a sitting of Parliament’s portfolio committee on transport last week.
According to the AG report, SAA’s liabilities increased from R6,3 billion to R9,4 billion in the past year, while assets grew from R12,8 billion to R16,1 billion.
When the VF Plus asked the AG whether this situation could be considered sustainable and financially healthy for the airline’s future, the answer was that from an operational perspective, it is not.
Philip van Staden, VF Plus chief spokesperson on transport, said debtors owe SAA between R1,5 billion and R1,7 billion, while the airline owes creditors between R800 million and R900 million.
The airline claims it has no outstanding long-term loans, as these were fully paid in 2024 with funds obtained through business rescue.
The DA said significant doubts exist over whether SAA can remain a going concern this year. “It is losing money on its operations and has few assets left to sell,” Hunsinger said.
He added that without a serious course correction, SAA will need yet another bailout from the state. “This public money would be going into an entity where the CFO and CEO have both resigned within the past month, and with a track record of wasting, losing, and mismanaging money.”
The VF Plus called for privatisation of the airline. “The government will never truly succeed in getting SAA out of its financial predicament without continuous assistance,” Van Staden said.
The DA has vowed to oppose any further bailouts, whether disguised as asset sales or otherwise.
Minister Creecy has not publicly commented on the resignations of the former CEO and board members.
