Question NW3216 to the Minister of Finance
30 October 2017 - NW3216
Lees, Mr RA to ask the Minister of Finance
Whether the SA Airways (SAA) has a contract with the publisher of a certain newspaper (New Age Newspapers) for the supply of newspapers; if so, (a) what amount does the specified contract cost SAA each month, (b) on what date (i) was the contract signed and (ii) does the contract expire and (c) what are the details of price escalation clauses included in the contract?
Reply:
SAA does not have a direct contract with New Age Newspaper for the supply of newspapers. However, SAA has a month-to-month contract with Press Support, which provides for the supply of a variety of readership material including the New Age newspaper to our passengers.
(a) The contract with Press Support in respect of the New Age newspaper costs R165 690 per month excluding VAT. The New Age newspaper supply costs covers Johannesburg, Durban and Cape Town stations.
(b)(i) The contract with Press Support was signed in April 2009.
(b)(ii) This is a month-to-month contract and SAA may terminate the agreement by giving a one months’ notice with no penalties.
(c) The contract provides for general inflationary increase in March/April of every year.