The investigation will look into the airline’s transactions prior to it being placed under provisional liquidation in April. If they find that SA Express continued to trade under insolvent circumstances or that the previous board presided over dodgy dealings at the airline, the directors could be found guilty of reckless trading under the Companies Act.

The inquiry was prompted by various issues including the investigations into fraud and corruption by state authorities as well as various requests from stakeholders with allegations of misappropriation of funds or reckless trading, according to provisional liquidator Aviwe Ndyamara.

He added that the inquiry into the airline’s previous transactions is a way for creditors to recover any lost funds.

Moneyweb