Johannesburg - The struggling national airline has once again failed to submit its financial statements for the 2014/15 period, once more forcing the Treasury to request another two-month extension. This is the fourth time the embattled airline has failed to submit the financial statements.
Read also: SAA's financials: Treasury wants another extension
The original deadline for the airline to table its annual report was in September, but it was unable to do so because, at the time, it needed a R5 billion guarantee to continue to establish itself as a going concern.
The Treasury gave SAA until today to submit its financials.
Yesterday the Treasury said the airline had submitted an updated application for a going concern guarantee in December as the financials could not be finalised on a going concern basis until a decision was taken on the application.
“Given the potential implication for the sovereign and for the economy, the matter has required extensive and careful consideration,” the Treasury said in a statement.
Ongoing delays
The ongoing delays in the finalisation of the financial statements come as the airline faces internal strife between the board and some executives on its stabilisation.
SAA sources yesterday told Business Report that the failure to submit the financial statements timeously could also be because of disagreements between the board and the Treasury on the restructuring of the airline’s finances.
“It does not look like our problems are likely to be solved soon as the (board chairwoman) Dudu (Myeni) appears not to be co-operating with the Treasury,” one source said.
“It looks like she wants to pull one way while the Treasury wants to pull in another direction. It is quite disheartening,” the source said.
SAA spokesman Tlali Tlali said the release of the financial statement was linked to the annual general meeting (AGM), which the airline had not held for more than two years.
“The AGM is a shareholder process and the airline takes its cue from the National Treasury on this,” Tlali said. “We are not able to make public information in relation to the finances of the company up until the AGM has taken place and the annual report tabled in Parliament by the shareholder representative.”
The Treasury could not give further reasons for the extension. But it is an open secret that relations between the Treasury and the airline had been frosty since President Jacob Zuma decided to transfer SAA oversight to the Treasury.
It shone the spotlight on the financial deficiencies dogging the national carrier, resulting in the axing of former finance minister Nhlanhla Nene after he threw down the gauntlet, challenging the board for its decision to pursue a controversial aircraft deal. Nene was subsequently replaced by little known backbencher Des van Rooyen for four days.
Only and after the markets reacted badly to the decision, was Zuma forced to reappoint the incumbent Pravin Gordhan to the position.
Another source said the failure to submit the financial statements was a direct result of the instabilities that have dodged the airline’s leadership.
SAA has been operating with an interim board for years and has changed its executive structure many times during the period.
This week the board suspended SAA treasurer Cynthia Stimpel in the latest wave of disciplinary proceedings that have caused upheavals at the carrier. Stimpel allegedly questioned the wisdom behind the appointment of BnP Capital to raise R15bn for SAA ahead of established financiers who would have cost the airline less.
She is said to have objected to BnP advising SAA on the restructuring of the debt and to raise the funding in return for a R256 million success fee.
“Stimpel was a victim of refusing to be part of a deal that would have left SAA in an even more precarious situation,” another source said.
“She took a principled stance against BnP, but suffered as a result.”
During his Budget speech in February Gordhan requested that the struggling airline be given until today to submit the statements that had been due since September.
BUSINESS REPORT