AFRAA held the 1st Finance Oversight Committee (FOC) on the 30th July 2012 at the AFRAA headquarters. The FOC replaces the Economic and Finance Committee which was phased out in the new AFRAA structure.
Delegates from the airlines and AFRAA Secretariat who were present at the Finance Oversight Committee meeting
In April this year, the Executive Committee nominated EgyptAir, Ethiopian Airlines, Kenya Airways and South African Airways to constitute the FOC. The inaugural meeting was attended by the Finance Director of Kenya Airways, Alex Mbugua, Head of Passenger Revenue Accounting of South African Airways, George Mellet and Hossam Essa, Manager: Alliances & Agreements Yield Evaluation of EgyptAir. The fourth member of the Committee who could not attend the meeting due to prior commitments is Nega Mekonnen of Ethiopian airlines. The Committee unanimously elected South African Airways George Mellet as the first Chairman of the FOC.
The role of the FOC is to advise the Executive Committee and Secretary General on all financial matters relating to Association and financial issues concerning air transport in Africa. During the meeting, the committee among others; reviewed and endorsed the financial statements and auditors report for 2011 undertaken by Messrs. Deloitte & Touche and recommended their submission to the Executive Committee and 44th Annual General Assembly. They also reviewed and endorsed the new membership subscription and the budget for 2013.
The Secretary General briefed the Committee about the proposed development of the vacant AFRAA land at the headquarters and they made far reaching and constructive contributions to development planning process. Kenya Airways offered to avail expertise to assist the Association develop a procurement policy which will serve as guide to transparent tendering and procurements of suppliers and services by the Association whenever major investments of resources are required.
To ensure Senior Finance Executives in all member airlines are kept abreast with the work of the FOC and contribute to the work of the four-man team, the Committee directed the Secretariat to send out a communique to all airlines informing Finance executives of the terms of reference and business of the FOC and soliciting contributions of issues of interest to be included in the work programme of the FOC.
The Committee would like the Secretariat to invest resources into joint initiatives among airlines that will reduce airport handling costs and improve service delivery and also arrest the Unpredictable increases in airport taxes, charges and fees that are stifling the growth of the industry. The AFRAA Secretariat was represented at the meeting by Dr Elijah Chingosho, Secretary General, Raphael Kuuchi, Director, Commercial/Corporate & Industry Affairs, Juliet Indetie, Deputy Head, Corporate Finance & Admin and Roselyn Mbugua, PA & Accounts and Admin Assistant.