Parliamentary Question: SAA sponsorships

1332

DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA

NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

QUESTION NO.:335

DATE OF PUBLICATION: 26 February 2010

Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:†

(1) Whether the SA Airways sponsored any organisations (a) in the (i) 2006-07, (ii) 2007-08, (iii) 2008-09 financial years and (iv) during the period 1 April 2009 up to the latest specified date for which information is available; (b) if so, (i) what organisations, (ii) at what amount and (iii) what were the activities in each case in each financial year;

(2) Whether she will make a statement on the matter? NW404E

REPLY

(1)(a)(i-iv) (b)(i-iii) South African Airways has sponsored different sporting codes and individuals within the period in question. Details of the sponsorship are outlined in Annexure A (attached).

(2) Yes. The SAA Board undertook a forensic audit into the financial management of SAA and discovered some irregularities in respect of sponsorships. The KPMG forensic investigation is now complete and the new SAA Board is reviewing what steps should be taken. Minister is aware of the contents of the investigation and is currently awaiting a response from the SAA Board as to the specific follow-on actions that are to be proposed by the Board.

South African Airways participates in sponsorships to improve brand equity. Specifically the components of awareness, familiarity and transfer of emotional affinity or loyalty.

The SAA brand attracts an average of 57% of customers because of their emotional and national loyalty to South Africa. The titles with the similar loyalty attraction are SA Rugby, Cricket, Bafana Bafana and key sporting individuals like Ernie Els, Gary Player etc.

 

Annexure A: PQ 335 SAA Sponsorship

 

Name of Entity

Value

When were they undertaken

When do they end

Activities

1 April 2006 to 31 March 2007

SAGA World Amateur Golf Championships

R5 000 000

15 October 2006

19 October 2006

  • Re-enforce loyalty and brand familiarity

  • This sponsorship has been concluded and no further agreement or activity exists

ATP Tennis

$124 000 000

1 May 2006

1 April 2009

  • Brand Awareness and hospitality for corporates and key retail customers.

  • ATP International brand awareness and familiarity communication of value proposition.

  • Direct marketing opportunities to all players, coaches umpires and administration staff.

1 April 2007 to 31 March 2008

ISM Golf Players

3 000 000 travel-rands

  1. May 2008

30 April 2010

Contract has not been renewed.

Angel Cabrera

$3 800 000

1 September 2007

31 August 2010

  • Global brand association and exposure.

  • National affinity and loyalty for the Argentinean market

  • Brand Awareness and dedicated golf events exclusively for customers.

SAFA

R49 000 000

2007

2010

  • Corporate Accounts and exclusive travel.

  • Follow your team campaigns for driving sales during major tours.

  • Corporate Hospitality

  • Contract was cancelled 2008. No details available of settlement.

1 April 2008 31 March 2009

SA Rugby

R41 896 250 plus

33 744 000 in travel-rands

1 April 2008

31 March 2011

  • Corporate Accounts and exclusive travel.

  • Follow your team campaigns for driving sales during major tours.

  • Corporate Hospitality

Cricket South Africa

R11 350 680

1 May 2008

30 April 2011

  • Corporate Accounts and exclusive travel.

  • Follow your team campaigns for driving sales during major tours.

  • Corporate Hospitality

Sunshine Golf Tour

R9 102 000 plus

5 000 000 in travel-rands

30 June 2008

30 April 2011

  • Global brand association and exposure.

  • National affinity and loyalty for the specific markets.

  • Brand Awareness and dedicated golf events exclusively for customers.

SA Football Association

R20 280 000 plus

4 500 000 in travel-rands

1 September 2008

1 August 2010

  • Corporate Accounts and exclusive travel.

  • Follow your team campaigns for driving sales during major tours.

  • Corporate Hospitality

Retief Goosen

$93 300

1 December 2008

1 December 2011

Contract cancelled

David Frost

200 000 in travel-rands

 

 

Contract cancelled

1 April 2009 to 31 March 2010

ATP Tennis

$ 21 309 750

1 July 2009

31 December 2012

  • Brand Awareness and hospitality for corporates and key retail customers.

  • ATP International brand awareness and familiarity communication of value proposition.

  • Direct marketing opportunities to all players, coaches, umpires and administration staff.

SATA

R4 000 000

1 October 2006

30 September 2009

  • Brand Awareness and hospitality for corporates and key retail customers.

  • ATP International brand awareness and familiarity communication of value proposition.

  • Direct marketing opportunities to all players, coaches, umpires and administration staff.