Regional carrier SA Express is in trouble and just like South African Airways its trouble of a financial nature.
In the latest audit of the airline’s financial statements it was found that while it made some R16 million in profit during the 2015/2016 financial year, the same amount was incurred in irregular expenditure reports EWN.
Now government’s regional airline will face Parliament to explain its wasteful and fruitless expenditure.
“Their audit is not proving to be an improvement but a worsening situation,” said chairperson of the Standing Committee on Public Accounts (Scopa) Themba Godi.
Like SAA, SA Express says that it will require a cash injection to keep operating. The regional airline also says that it will not be able to recover more than R30 million used in wasteful expenditure.
The news comes on the back of calls from the DA just a week ago to privatise SAA amid rumours that Treasury was considering a sale of its stake in Telkom to fund yet another SAA bailout.
“The effect of the numerous government bail outs and the dire financial situation at SAA is not limited to depleting the public purse but has also been partly responsible for ratings downgrades and negative outlook ratings from international agencies,” said the DA’s shadow minister of finance Alf Lees.
SA Express will face Parliament’s Scopa this week.