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Category: Cartoons / Tag: wasteful spending South Africa SAA flysaa.com KPMG Ernst & Young audit / 5 comments
![]() South African Airways have just spent R20-million smackers on an audit that revealed how the airline wasted close to R70-million on auditing in the last four years. The forensic audit, conducted by KPMG, has revealed how rival firm Ernst & Young failed to detect financial irregularities, despite being contracted at R68-million over four years to do so. The forensic audit also revealed massive wastage by the airline, especially while under the leadership of former CEO Khaya Ngqula. The irregularities include huge sponsorships to Argentinian golfer Angel Cabrera (R21-million over 3 years) and a further R120-million to the Association of Tennis Professionals (ATP). The SAA has a history of standing begging bowl in hand when the South African cabinet considers budgetary requirements. In 2002 the taxpayer helped fund a $3.5-billion fleet and airline overhaul. Shortly afterwards, in 2004 the airline suffered a R6-billion hedging loss that was covered by -surprise surprise - the SA taxpayer. Since then, SAA have received a staggering amount of money to keep it afloat (R2.4-billion in 2005, R1.3-billion in 2006, R1.56-billion in 2007, R5.4-billion in 2008 and R1.6-billion in 2009). The overall costs shown above do not include the cost to the taxpayer for funding SAA's low cost domestic carrier Mango either. SAA has a long history of face palming incidents... remember that huge drugs scandal from 2009 where the carrier was being used by flight crews to smuggle drugs? It's sadly ironic that the airline is now trying to go after the former CEO for spending irregularities, especially considering that such irregularities are seemingly the norm rather than the exception, no matter who you are in the pecking order... Add your comment
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Comments
The real shame is that the "Powahs" that be, feel utterly justified in their greedy and obscene actions... It's like kicking a puppy to death and justifying your actions by saying it's because the puppy's mother bit your father.
All that money and their planes are falling out the sky occasionally too...
I have a dream ...