In a statement this week reported by SAnews.gov.za, the Ministry of Finance said Minister Gordhan has written to Speaker of Parliament Baleka Mbete.
“Parliament had previously granted SAA an extension up to 15 February 2016. The extension was requested due to the airline’s financial challenges and the company’s external auditors’ concerns regarding its going concern and liquidity position,” said the ministry.
The national carrier submitted an application for a going concern guarantee on 21 December 2015, which is under consideration.
“Given the potential implication for the sovereign and economy, the matter requires extensive and careful consideration. SAA is unable to finalise its Annual Financial Statements (AFS) for the tabling in Parliament until a decision has been made on the going concern application. The Minister has therefore requested that the tabling of SAA’s AFS be extended to 15 March 2016.”
This setback follows the previous blunder when SAA chairperson Dudu Myeni (pictured above) conceded in her battle last to reconfigure the airline’s Airbus swap deal – a deal which is set to play an important part in former Finance Minister Nhlanhla Nene’s sacking (because he did not want to approve the deal).
Nene’s refusal is interpreted as a move that saved the SAA because it is accepted the embattled airline would not have been in a position to afford Myeni’s ill conceived plan.
Sticking to former minister Nene’s approved plan from July last year, the transaction will see SAA swap the purchase of ten A320 aircraft for a lease of five A330-300 aircraft from Airbus. The implementation of the deal in this manner will mean that SAA will no longer be required to pay additional pre-delivery payments to Airbus, which would have amounted to about R603m.
The SAA board conceded defeat to Treasury after new finance minister Pravin Gordhan directed it to conclude the swap transaction with Airbus in line with approval granted by Nene.
One can only wonder why Myeni is still around… Oh, now we remember. It’s because she is a very close buddy of that guy they call President Zuma.
