Troubled national airline, Air Botswana is reportedly failing to collect an outstanding amount of eight million Pula from the South African Revenue Services (SARS). The money is said to be the Value Added Tax receivable refund for a period of more than one financial year.
An audit of Air Botswana financial statement for the financial year that ended 31 March 2015 carried by independent auditors, PricewaterhouseCoopers shows that a refund debt of atleast P4.7 million has been carried forward from the previous years while the remaining balance was for the year under review.
Air Botswana management has since admitted to the failure and have indicated that they have been closely following up on the VAT refund due from (SARS).
Despite this accession, PricewaterhouseCoopers auditors are said to have noted that Air Botswana has not complied with all the financial provisions of the Air Botswana Act (Cap74:07) which require its revenues to be sufficient to produce a reasonable rate of return.
The cash stripped airline has been incurring losses over the past years which had accumulated to P485.32 million as at the end of March last year. During the year ended 31 March 2015, Air Botswana recorded a loss of P164.78 million compared to P99.99 million reported in the previous year.
The auditors indicate that the airline will continue making losses in the foreseeable future with its ability to continue as a going concern being dependent on the government’s continued financial support in the future.
Already the government has provided close to P290 million as capital injection during the year under review. Meanwhile the working capital position of the airline as at 31 March 2015 showed current assets of P188.71 million and current liabilities of P170.30 million translating into net current assets of P18.41 million.