The board of SA Express has announced that it is seeking legal advice after a high court decision ordering the airline to be placed under business rescue.
“[The] SA Express board of directors noted the judgement against SA Express and are seeking further legal advice in relation to the Business Rescue judgement received on 6 February 2020,” said the airline on Thursday.
The order to place the airline — which falls within the ambit of the Department of Public Enterprises — was made by the Johannesburg High Court on Thursday.
This follows an application lodged with the court by a transport company seeking to recover funds from the airline. The application was made last month.
“The SA Express board states that there are disputes with the supplier and that it has been dealing with the malfeasance in an orderly process.”
The airline said the review of the judgement by its lawyers is an indication that the court exceeded what was required of it.
“The review of the judgement by SA Express’ lawyers indicates that the court exceeded what was required and granted orders not sought by the applicant. The court has also not made any order on whether the matter was urgent or not, in circumstances when the urgency was specifically opposed,” it said.
SA Express said it has been plagued by suppliers who are currently under internal review for serious abuse of the procurement system, unfair pricing and overcharging.
“The airline states that it would be irresponsible and amount to wasteful and fruitless expenditure to make payment on invoices submitted by Ziegler in circumstances where it was aware of irregularities.
“It would be absolutely criminal to allow further misuse of taxpayers’ money to reward a company whose contract has been identified, through forensic investigations, as irregular and in contravention of the Public Finance Management Act.”