Cape Town - The Standing Committee on Public Accounts (Scopa) has demanded an updated report from SAA business rescue practitioners (BRPs) on the money spent for their services over the last few months since they began their work.
This was after the BRPs presented figures dated May 2020 on the fees.
It was revealed that R240 million has been spent on the business rescue process. The breakdown involves fees paid to law firms, aviation advisers, valuation advisers and BRPs.
The BRPs were appearing before Scopa on Thursday when the committee said the figures would need to be updated because they did not include those of the last few months.
Scopa chairperson Mkhuleko Hlengwa said the work done must not be in vain because a lot of money had been spent. He also called for an end to the business rescue process because it has been going for a long time.
The process began in December 2019 and it has not been finalised. But business rescue practitioner Siviwe Dongwana said they will exit the business by the end of March.
Hlengwa said it has to come to an end.
“This process can’t be open-ended. It needs to be brought to a logical, economic and functional conclusion insofar as sustainable viability of SAA is concerned. We must not put the taxpayer in a position where we are continuously throwing financial solutions to non-financial problems. Something has got to give,” said Hlengwa.
“After R240m of the business rescue process, it must not be in vain. That is the desperation of the situation. It calls for mutual respect and it calls on all of us to perform our duties and responsibilities wherever we are deployed,” he said.
Dongwana said the process would be concluded by the end of March.
He said SAA’s return to profitability once it starts operating will depend on a number of factors. These would include the fleet size, routes and prices that are in the market.
Political Bureau