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There had been a “severe breakdown” in the relationship between the minister and the board because of a dispute about accounting systems, Gigaba’s spokesman Mayihlone Tshwete told SABC radio news.  

“For two years we didn’t get financial statements from the company,” Tshwete told the broadcaster.

Business Day reported that the airline had failed to present its 2011/2012 financial statements to Gigaba at its annual general meeting on Monday.

According to Beeld, there had been allegations of irregularities, including a R32 million VAT payment allegedly mistakenly made to the SA Revenue Service.

Assets had also allegedly been managed outside the guidelines of acceptable accounting practice, the newspaper reported.

However, Lillian Boyle, who chaired an inquiry by the board, told the parliamentary portfolio committee earlier this year the irregularities were “accounting errors that can be attributed to the bookkeeper’s incompetence and inexperience”.

She said the mistakes had been perpetuated for a number of years, and that they had been continuously rolled over.

On Monday, Boyle was replaced by Andile Mabizela, a well-known businessman with experience in the airline industry.

Gigaba also replaced the auditors, Nkonki, and said the new board should urgently resolve any outstanding issues concerning the annual report.

Nkonki partner Steven Firer told Business Day the firm was relieved that it would no longer be involved in auditing the carrier.

“We are pretty happy about that because of the high engagement risk.... There are just too many things that can go wrong. We can’t put our firm in that position again,” he said.

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Wed May 22 13:54:57 SAST 2013 ::

Aug 14, 2012

Reyataz

Well, would you have had time to even look into the statements minister if your were busy cheating on your wife, writing all those saucy smses to your nyatsi? Eish, JZ has so many people emulating him!
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Aug 14, 2012

TDK

Common. Leave the guy alone. I don't think ministers including JZ have time to read through the entire reports. Someone do peruse for them and they just browse through the summary.
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Aug 14, 2012

Secretary

Before Mangaung :Public Enterprises Minister Malusi Gigaba has axed the board of the state-owned airliner SA Express
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After Mangaung:ANC has axed former Public Enterprises Minister Malusi Gigaba and Aluminium Shower.
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Aug 14, 2012

tpaz

What does the minister know about corporate governance and basic accounting...
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Aug 14, 2012

MommaC

“accounting errors that can be attributed to the bookkeeper’s incompetence and inexperience”.

ummmm who employed the 'bookkeeper' (wouldn't an accountant be a good idea for something this large?) and who has not replaced the incompetent 'bookkeeper' ???
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Aug 14, 2012

tokolosi

so if they have not produced AFS for 2 yrs, what did the auditors sign then - seriously...will Nkonki also repay the auditing fees they recevied for the 2 yrs?
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Aug 14, 2012

Phuphethakatha

It's a mess just about everywhere. Now I am worried about what's not yet known to public !
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Aug 14, 2012

zino

i put a problem,u fire me it remains minister or u can rid it after a long time<<over ten yrs
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Aug 14, 2012

Rathebe

Keep up the good work Minister,your efforts in government are well received by many people, when you were ANCYL President you focused on youth related issues more than anything else and you also served at Home Affairs with dinstinction. You are truly a shinning star and good example to your colleagues in terms of performance in cabinet. I am confident you will turn the parastatals around.
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Aug 15, 2012

Dandan

@tpaz
What does the minister know about corporate governance and basic accounting
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you are idiot yourself, the big one , you forget that auditors are there to do their job, shut up focus on your administration job , you know nothing about management responsibilities
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