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South African Airways (SAA) representatives told parliament’s Portfolio Committee on Public Enterprise yesterday that the state-backed carrier has ambitious plans to expand its operation in Africa – despite its past disasters and despite asking for a significant bailout from government earlier this year. These plans for expansion were tabled without appropriate feedback being provided on its potential impact on the airline’s already shaky financials.

The DA will be writing to the Chief Executive, Siza Mzimela, to request that the airline presents a comprehensive report to the committee on its financial activity over the last year to reassure taxpayers that the parastatal isn’t heading for another disaster at their expense.

In February this year, SAA asked the government for what it termed “proper capitalisation” to renew its fleet and develop its cabin bouquet. The R6 billion requested came on the back of a string of similar pleas to the government, the last being in the region of R3 billion in 2008. The excuses given for these requests have ranged from having too many personnel to the rising cost of fuel.

The DA is somewhat baffled by the parastatal’s proposals for expansion given its consistent reliance on state-funded safety nets. The fact that these new routes may in fact be profitable is beside the point. SAA would not be in a position to even consider such ventures without the government’s backing. If the venture were to prove fruitless, as did the Tanzania expansion plan in 2008, the bill would once again have to be footed by the public purse.

SAA presentations are notorious for selectively reporting on favourable results in an attempt to placate members of the committee and the public. Their representatives routinely fail to respond to pertinent questions about their operations and financial activities. Yesterday, for example, the delegation was silent on my question relating to the revenues generated from the sale of SAA’s Heathrow landing spot. Too often, Parliament – as the representative of the people – is simply left in the dark.

SAA should fully disclose all of its financial activities in the last year to the portfolio committee. Full disclosure would at least afford its primary shareholder, the taxpayer, the opportunity to have a say in any expansionary plans, before the national carrier sets out on another African voyage.

In this regard, I will be writing a letter to the Chief Executive of SAA requesting full disclosure of its financial activities for the last year to the Portfolio Committee on Public Enterprises.

SAA must ensure that its finances are in order before considering any ambitious expansionary forays. The people of this country have the right to know what their hard-earned money is going to be spent on.