South African Airways may not be able to continue to operate as a going concern, while the struggling state-owned airline has failed to properly record financial information and the value of assets, according to the Auditor General.<\/p>\n
SAA made a net loss of about R5.6 billion ($471 million) in the year through March 2017, according to a document signed by AG Kimi Makwetu. Liabilities exceeded assets by about R17.8 billion, it said.<\/p>\n
\u201cSix consecutive years of operating losses have further eroded the capital base and this continues to impact on the entity\u2019s ability to operate in a highly demanding and competitive environment,\u201d the AG said in the report, which was dated Dec. 8 and released Thursday.<\/p>\n
A turnaround of SAA is among the most pressing items in the in-tray of South African President Cyril Ramaphosa, who has pledged to revive state companies after years of mismanagement and corruption allegations under Jacob Zuma eroded their balance sheets.<\/p>\n
Under new chief executive officer Vuyani Jarana, the company is cutting routes and costs to reduce a dependency on government debt guarantees.<\/p>\n
The airline is looking for an equity partner to provide cash to help turn it around. Former Finance Minister Malusi Gigaba said in November there had been interest in a deal, while SAA is also compiling a list of assets that could be sold.<\/p>\n
The AG faced challenges in compiling the report as SAA didn\u2019t keep a proper record of financial information or adequately value property, planes and other assets, he said.<\/p>\n
SAA spokesman Tlali Tlali said he\u2019s unaware of the report.<\/p>\n