Oversight committee to try put wind under SAA's wings

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Minister of Public Enterprises Pravin Gordhan says the chairperson resignation is due to personal reasons.

JOHANNESBURG - A  special oversight committee will be established to address liquidity issues at SAA.

It will be chaired by Deputy Finance Minister Mondli Gungubele, whose main task will be to come up with a way to find a strategic equity partner for the national carrier.

The airline presented its fourth-quarter results to Parliament’s finance committee on Thursday.

It reported a R2-billion loss.

It said it would break even in the next three years, despite facing serious liquidity issues.

READ: SAA board walks out of Parliament, fails to deliver strategy

SAA CEO Vuyani Jarana said factors in the macro environment had had an impact on cost revenue, financing instruments and currency translation.

"The plan that we are making today talks about breaking even in 2021. We are still committed to that plan," he said.

SAA chairman Johannes Magwaza said the liquidity problem was a growing concern.

It had thus been decided, in consultation with the Department of Finance, that an oversight committee should be appointed. The committee would, in no fewer than six meetings,  consider liquidity and a sustainable financial structure for of SAA, Magwaza said. "

"We are also looking for a strategic partner.”