http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.09Change: 0.03
R/$ = 13.45Change: 0.00
Au 1133.30 $/ozChange: -2.19
Pt 1012.00 $/ozChange: -4.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 13, 2012

Gigaba wants new SAX board to rebuild airlines damaged image

Back
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
Aviation||Services|
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



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
Deputy President Cyril Ramaphosa
Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
African Civil Aviation Commission secretary-general Iyabo Sosina
Africa’s aviation infrastructure has not kept pace with traffic demand, with extensive deterioration seen in infrastructure that is now in dire need of investment; however, the next three decades could see the sector shine, should a 15-year-old declaration be...
South African Airlines is close to finalising the cancellation of a contract to supply ten Airbus A320 aircraft as part of plans to get the national carrier back to profitability, its CFO said on Wednesday. "We need to get the final approval from the board who can...
More
 
 
Latest News
Deputy President Cyril Ramaphosa
Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
Frost & Sullivan ICT programme manager Gareth Mellon
It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
International advisory firm Merchantec’s CEO Confidence Index fell to 42.2 points in the third quarter of the year, compared with 45.4 points in the second quarter, remaining below the neutral 50-point level. This is the lowest score recorded in the Merchantec CEO...
More
 
 
Recent Research Reports
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,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96