Air Seychelles Not Viable Says IMF
The Government has misled the Seychellois public again on a matter of much public interest – the state of finances at Air Seychelles. On Mar 12, 2015 Air Seychelles' website posted as follows “Air Seychelles, the national carrier of the Republic of Seychelles, today announced a third consecutive year of profitability after recording a net profit of US$3.2m for 2014.” Its CEO Manoj Papa added that “our increased profit figure is the result of higher revenue, greater productivity and an ongoing focus on costs.” In stark contrast to this, the IMF on Mar 28, 2015 confirmed that Air Seychelles “had declared a profit at a net level, which includes all revenue and costs, but had incurred a loss at an operating level". This is shameful for a Government that speaks of transparency. The public were not told that if you removed the subsidy that was provided by Government to Air Seychelles in in 2014-2015 of over $13.5m, Air Seychelles has actually run a loss of at least $10.3m and has only been kept flying because of tax payers’ money being thrown in. It is unacceptable that a public enterprise CEO should lie to the public who pays his salary. It is even worse that Government had hoped they would not be discovered on a lie of this magnitude especially as 2 Government Ministers sat on the Air Seychelles board. How can this Government be trusted in its presentation of public accounts? At the Registrar the last annual returns lodged have been for the period 2010-2011; this in itself is a violation of the law. This state of affairs calls for a full investigation of Air Seychelles and its accounts and is a matter that should be raised by the parliament if they are serious about public finances.
By Ahmed Afif