SAA in urgent need of rescue - DA
THE DA has called for the next meeting of parliament’s standing committee on finance with South African Airways (SAA) to be brought forward in an effort to stave off the “increasingly certain” liquidation of the embattled airline.
The party’s Alf Lees said yesterday this was “vital in order to ensure that SAA is placed under business rescue before it collapses”.
The meeting is scheduled for September 20‚ but should be set for August 31.
Lees said SAA’s “liquidation has increasingly become a certainty” following reports of “this week’s shock resignation of the head of the audit and risk committee Yakhe Kwinana”.
BDlive reported yesterday that Kwinana said she feared the damage to her reputation‚ as the possibility of the liquidation or business rescue of SAA came into sharp focus at the end of last month.
Lees also described as “astounding” media reports that “SAA board chairwoman Dudu Myeni is not able to communicate with Finance Minister Pravin Gordhan and Standard Bank requiring repayment of R250-million”.
SAA also faces a September 6 deadline from the Hong Kong registrar of companies‚ which threatened to terminate routes to the city due to concerns about the airline’s financial sustainability. The registrar wants SAA to submit its financial statements.
SAA urgently requires a R5-billion loan guarantee from the Treasury in order to be considered a going concern and to assure lenders of its sustainability.
“If a further bailout from government is to be avoided, SAA must be placed under business rescue,” Lees said.
He said the “the first step in the business rescue process is the reshuffling of the SAA board and removing . . . Myeni”.
“History has proven that no actions can occur at SAA with Myeni at the helm.” — TMG Digital