Adding to its woes, the Employees Provident Fund (EPF) is also understood to have instructed its lawyers to enforce a judgment for payment of RM4 million in unremitted contributions.
According to sources, the two senior staff who quit two weeks ago were the company’s nominated quality assurance manager for continuing airworthiness management organisation and approved maintenance organisation, and the nominated engineering manager.
In an official complaint to the Civil Aviation Authority of Malaysia (CAAM), an aviator urged the regulator to take the requisite action in the interest of air safety.
“Given there is currently no one in charge of compliance and quality, I recommend that you consider suspending approvals to prevent any non-compliance issues,” the complainant said in the email sighted by FMT.
Meanwhile, an EPF source said it has instructed its lawyers to take action after SAS defaulted on its obligations under a consent judgment.
The judgment was recorded in court after EPF and SAS agreed that the outstanding debt, said to be in excess of RM4 million, be settled in 10 instalments. However, the source said SAS has not fulfilled its end of the bargain, prompting EPF to take this action.
“The lawyers are finalising the total amount SAS owes EPF now in order to file bankruptcy proceedings against the company. The fund is also seeking to prevent the company’s directors from travelling abroad,” the source told FMT.
Last month, SAS suffered a major blow after its air operations certificate (AOC) expired on July 31, at the end of a five-month suspension imposed on the company. The suspension was brought about by the Malaysian Aviation Commission’s refusal to renew the company’s air service permit (ASP) on account of its failure over several years to pay salaries on time and remit statutory deductions in the form of EPF, income tax and Socso contributions.
SAS turning corner, CEO assures
Meanwhile, in a message to the company’s remaining staff, SAS CEO Ida Adora Ismail issued an apology, saying the company is faced with stiff challenges.
She said the company is committed to navigating through troubled times transparently, with a focus on getting back on track.
“We understand that the past few months have been exceptionally challenging for everyone. The delays in salary disbursements have undoubtedly caused significant stress and uncertainty for you and your families.
“We sincerely apologise for the impact this has had and want to assure you that your concerns are fully recognised by the management. Despite these hardships, we have been working diligently to ensure that partial payments have been made,” she said.
Ida said the firm was beginning to see the signs of progress as it moves into the final quarter of the year, adding that its financial situation is stabilising.
She said SAS is actively working to catch up on all its statutory obligations, adding that the company sees these responsibilities as a priority.
Ida also said the company has experienced positive business developments recently, especially as regards the Indonesian market for the maintenance, repair and overhaul services for aircraft.
She said SAS recently completed the first successful aircraft delivery to its client.
“The leadership remains fully committed to this journey, and together with your continued efforts, we will strive toward a brighter future. Rest assured, the directors and owners have not given up, and neither should we,” she said.
A CAAM official when contacted said they will not comment on any ongoing investigation.
FMT has reached out to SAS and EPF for comment.