The Department of Public Enterprises says it is ‘disappointing’ that the Gauteng High Court granted the final liquidation order on SA Express Airways after liquidators could not find a suitable buyer for the regional airline.

The Department says it ”sympathizes with the employees of the regional airline who were not able to receive any compensation after years of working at SA Express.”

SA Express is still sitting with liabilities of more than R900 million, including outstanding salary payments to employees. Over 700 workers could lose their jobs.

The Department says the liquidation of SA Express is a result of many factors including years of bad management, state capture, corruption and exacerbated by the impact of the Covid-19 pandemic on the global aviation market.

SA Express was placed in business rescue by one of the suppliers of the airline to
save the business, but government was unable to provide the finance needed to implement a successful rescue process.

The Business Rescue Practitioners then applied for provisional liquidation of SA Express which was granted on 29 April 2021.

There were three different attempts by provisional liquidators to attract credible buyers
including a crowdfunding initiative by employees to buy the airline, but none had the
requisite financial resources to sustain the business post the sale.

Part 1 of the Judicial Commission of Inquiry into State Capture report, released earlier
this year by Chief Justice Raymond Zondo on SA Express, detailed evidence of deep-rooted corruption and fraud at the regional airline.

The findings of the Commission’s Report detailed the following:

• SA Express was improperly awarded a 5-year contract by the North West Province
  in respect of the Mafikeng- Johannesburg and Pilanesberg- Johannesburg and Cape
  Town routes.
• Funds were paid with no services rendered.
• There is evidence that public funds were syphoned out of the North West government’s
  coffers to various individuals and organs of the state.
• By 2019, a criminal investigation was underway and High Court litigation had been
  instituted. However, by the time the Commission heard evidence emanating from this
  investigation, in June 2019, the criminal process had not gained any substantial
  momentum.

The Department has urged law enforcement agencies to speed up the investigations
into the allegations of corruption and fraud and bring those responsible for the damage
caused to the SOE to book.