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Auditor-General Warns South African Airways Could Shut Within a Year

A disclaimer audit signals severe control failures threatening solvency.

Overview

  • South African Airways, which briefed Parliament on Tuesday, was flagged by the Auditor‑General as a going concern with material uncertainties that could trigger closure within 12 months.
  • Auditors singled out SAA Technical as the highest risk, saying the unit’s records were so compromised they could not complete many tests and that weak billing led to lost revenue.
  • SAA reported higher revenue year over year, yet operating costs rose faster and produced an operating loss, and officials said the declared profit leaned on selling a Heathrow landing slot rather than core flying.
  • Liquidity remains tight as the airline noted a R1 billion government cash injection during the year and disclosed about R1.1 billion trapped in foreign countries, mostly in Zimbabwe, which limits working cash.
  • Transport Minister Barbara Creecy said repeat disclaimers are unacceptable as the committee ordered a report on consequence management, and the board confirmed CEO John Lamola’s unexpected exit with an interim leader appointed from within.