http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.11Change: -0.10
R/$ = 10.74Change: -0.07
Au 1266.09 $/ozChange: 1.22
Pt 1412.00 $/ozChange: 3.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 13, 2012

Gigaba wants new SAX board to rebuild airlines damaged image

Back
Aviation|Airliner SA|Public Enterprises|South African Airways|Appropriate Accounting Treatments|Services|Andile Mabizela|Bridget Ssamula|George Mothemba|Inati Ntshanga|Karabo Tshailane-Nondumo|Lilian Boyle|Malusi Gigaba|Neo Priscilla Moshimane|Nkonki|Noni Dibate|Nosipho Gxumisa|Shumani Tshifularo
Aviation||Services|
aviation|airliner-sa|public-enterprises|south-african-airways|appropriate-accounting-treatments|services|andile-mabizela|bridget-ssamula|george-mothemba|inati-ntshanga|karabo-tshailane-nondumo|lilian-boyle|malusi-gigaba|neo-priscilla-moshimane|nkonki|noni-dibate|nosipho-gxumisa|shumani-tshifularo
© Reuse this



Public Enterprises Minister Malusi Gigaba has warned the incoming board at troubled State-owned airliner SA Express (SAX) that he will be watching its performance with “eagle eyes” as it moves to reverse the reputational damage that has occurred as a result of the failure to produce financial statements for 2011/12, as well as the withdrawal of the 2010/11 statements, owing to irregularities.

More “hands-on” oversight was required from the new nonexecutive directors, who would be led by Andile Mabizela, who succeeded Lilian Boyle as the group’s chairperson.

The CEO remained Inati Ntshanga, who was appointed in late 2010.

Speaking at the group’s annual general meeting (AGM), which took place at Airways Park, in Ekurhuleni, on Monday, Gigaba lamented the “drastic decline” in the domestic and regional carrier’s “performance, brand and reputation, management and internal controls”.

“This was aggravated by the withdrawal of the 2010/11 financial statements, which raised questions as to the competence of all the parties associated with the management of the company. This casts doubt as to the application of appropriate accounting treatments for the previous years.”

Only Dr Bridget Ssamula was re-elected to the new board, which also comprised of Ezrom Mabyana, Karabo Tshailane-Nondumo, Neo Priscilla Moshimane, Shumani Tshifularo, Nosipho Gxumisa, George Mothemba and Noni Dibate.

The external auditors, Nkonki, were also not reappointed and the Auditor General had been requested to take over the audit function.

SAX’s failure to present audited financial statement at the AGM was dubbed “irregular” and had been associated with an adverse opinion from Nkonki.

“The relationship between all parties has deteriorated to such an extent that it was prudent for the shareholder to engage both parties to address the impasse that found itself in the public domain,” Gigaba said.

The Auditor General would initially deal with the outstanding 2011/12 financial statements and Gigaba promised to communicate the outcome to the public and to Parliament.

The appointment of a permanent CFO was also highlighted as a key priority for the incoming board, as was the fostering of a “holistic and unified” aviation strategy that did not contradict the objectives of government or that of the national carrier, South African Airways (SAA).

“The new board is required to engage with SAA and the department to ensure that the current trend of misalignment of the overall strategic intent of both these entities is resolved,” Gigaba, who highlighted as a challenge the current franchise agreement between SAA and privately owned SA Airlink, said.

“Being mindful of competition laws, it is important that SAA and SA Express agree to embark on a process of continuous cooperative scheduling of their scheduled services, cooperative route development and mutual support to the enhancement of shareholder value.”


 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Aviation News
In its first appointment of a female to head up the continent’s biggest and busiest airport, Airports Company South Africa (ACSA) has named Bongiwe Pityi as the new GM of OR Tambo International Airport, with effect from September 1. An attorney of the High Court of...
Low-cost Pan-African airline fastjest has launched flights between Dar es Salaam,  Tanzania, and Entebbe, Uganda, marking the opening of the first direct air link between the two African capitals and the fourth international route offered by the airline. Noting that...
More
 
 
Latest News
Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
TNPA CEO Tau Morwe
The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks