Transport Minister says Air Zimbabwe’s accounts were last audited in 2009, debt now at $323 million

2.1.2 South African Airways

South African Airways (SAA) is a key benefactor of State funding.  Despite having state of the art equipment and being a member of Star Alliance, SAA posted a US$200 million loss in 2014, up from the US$91 million loss incurred in 2013.  SAA received Government bailout amounting to ZAR30 billion (US$2.4 billion) by March 2015.  The Government of South Africa has noted the strategic importance of the national airline and thus continues to support it.

2.2    Audited financial Statements

The Ministry also notes with concern that the airline, Air Zimbabwe’s audited financial statements are behind schedule, with the last audited financial statements produced in 2009.  The Ministry has given Air Zimbabwe an ultimatum to have their financial reports updated by the end of this year.  The current Air Zimbabwe Board and management has undertaken to rectify the situation.  The following progress has been achieved to date:

a)    Engaged BDO Accounting Firm;

b)   Management accounts now up to date;

c)    2010 accounts completed and await finalisation by auditors;

d)   Remaining accounts to be completed by end of 2017.

The current management has strengthened its internal Audit Department by engaging an Audit Manager and beefed up the audit section, which has been mandated to analyse the existing policies and come up with recommendations to avoid fraudulent activities.

2.3    Competitiveness of the Airline

Mr. Speaker Sir, in an endeavour to improve the airline’s competitiveness, the Ministry has appointed a substantive board, which was mandated to engage a substantive Chief Executive Officer for the airline.  The board is composed of personnel with various skills and experience from the public, private, tourism and aviation sectors to spearhead the turnaround of the Airline.  A wide consultative and vetting process was undertaken before the appointments.

Mr. Speaker Sir, I am pleased to report that after eight years, the Airline now has a substantive CEO and senior executive posts have been filled.  This has brought stability to the airline.  Management has been mandated to look into the cost structure of the airline.  In this regard, management is currently restructuring the organisation with a view to coming up with a lean structure, which will see the number of managers being drastically reduced.

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