Going concern test for SA Express – Minister

ACCOUNTING: Public Enterprises Minister Lynne Brown. PICTURE: GALLO IMAGES

PUBLIC Enterprises Minister Lynne Brown has informed Parliament that she is unable to table South African Express’ 2017 annual report as required by law.

In a letter to Speaker Baleka Mbete, Brown acknowledged that in terms of the Public Finance Management Act she was required to table the annual reports, financial statements and audit reports of public entities under her wing in Parliament within six months of a financial year.

Because SA Express’s financial year ended on March 31 the entity’s annual report, annual financial statements and audit report should be lodged in Parliament no later than September 30.

“In order to ensure that, as the executive authority of SA Express, I am unable to comply with this obligation,” Brown’s letter said.

She said that by submitting its annual report SA Express would be meeting a requirement to demonstrate its ability to continue operating on a going concern basis for a period of at least 12 months after the signing of the annual financial statements by satisfying the solvency and liquidity test set out in section 4 of the Companies Act.

“SA Express has yet to satisfactorily demonstrate such ability to the auditorgeneral. As a result the audit cannot be completed in order to finalise the 2016-17 annual financial statements,” Brown said.

“I therefore wish to inform the honourable Speaker that, in light of the above-mentioned situation, I am not in a position to table the SA Express annual report.”

She said that he annual report would be tabled as soon as the going concern status of the airline has been resolved and the audit had been concluded.