SACAA Annual Report 2022_23

PART F I Annual Financial Statements Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements

24. Contingencies Legal Matters

The SACAA is currently dealing with a litigation matter relating to a civil claim for damages lodged against it. A scheduled airline operator is claiming damages from SACAA and one of its employees to the amount of R180 000 000 because of findings and enforcement decisions taken as a result of their non-compliance with regulatory provisions when conducting their operations. The enforcement decisions were taken in December 2018 and January 2019. The airline is alleging that they have suffered damages as a result of the administrative decisions carried out by the SACAA. The SACAA is defending the matter. Both parties have served and filed their heads of arguments and the matter was heard on the 27 July 2023 and judgement has been reserved. With effect from 01 April 2019, the SACAA took over the assets and liabilities and the functions of Recreational Aviation Administration of South Africa (RAASA) which was previously designated to conduct its statutory recreational oversight functions in terms of the Civil Aviation Act. The plaintiff instituted civil claim against seven defendants and RAASA is the first defendant. The plaintiff is claiming compensation for an amount of R17 713 398 for loss of support as a results of passing on of her partner in an aircraft accident. This claim is covered by RAASA’s insurance policy. Based on the legal opinion received from legal team that has been instructed to defend the matter, the SACAA is confident that it will successfully defend the matter. There is also an inquest hearing underway. The inquest hearing will reconvene on 18 September 2023 in Secunda Magistrates Court.

SACAA is currently dealing with a matter relating to a claim for loss of support and damages against it. SACAA’s aircraft was invloved in an accident that resulted into untimely passing on of three of its employees. The claim is for a total amount of R19 100 000. SACAA is defending this matter through its insurers. The matter is still at the exchange of pleadings stage and SACAA has lodged an exception application against the contents of the plea. The SACAA has approached the Labour Court to review two separate CCMA Arbitration Awards that was issued against it by the CCMA. The claims against the SACAA in both instances was for reinstatement of the employees as well as back-payments totaling R7 322 537. The SACAA is confident that it can successfully review both matters at the Labour Court. Surplus funds A request to retain accumulated cash surpluses as at 31 March 2023 will be submitted to the National Treasury when the audited annual financial statements for the year ended 31 March 2023 have been approved by SACAA Board. If approved the accumulated surpluses will not have to be surrendered to the National Treasury. Historically the National Treasury has approved the retention of cash surpluses by SACAA.

212 I Annual Report 2022/23 I Annual Financial Statements