Aug 13, 2012
Gigaba wants new SAX board to rebuild airlines damaged imageBack
Airliner SA|Aviation|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
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
Article contains comments
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...