Help for SAA to recover funds from African states

IF ALL else failed, the National Treasury could enlist the help of President Jacob Zuma to secure the repatriation of SAA funds from other African states, Deputy Finance Minister Sifiso Buthelezi told MPS this week. Buthelezi told Parliament’s standing committee on finance the efforts to get the funds back could “include going to talk to the president to see if he would make himself available” to talk to his counterparts in Angola, Nigeria, Senegal and Zimbabwe. More than R1 billion of SAA’S reserves are stuck in foreign currency in these countries and it is worsening its cash flow problems.

Buthelezi and top SAA management were briefing the committee on its financial challenges and turnaround plan, but drew criticism from committee chairman Yunus Carrim for speaking in what he termed “generalisations”.

But SAA board chairperson Dudu Myeni countered that the answer to questions from MPS on how the board had adapted its approach to ensure the company, which is losing R250 million a month, returned to financial stability.

“It is a broad statement and not one area you can focus on – we look at the whole business in terms of what can be done.”

She stressed the cost of doing business remained too high.

Acting director-general of finance Dondo Mogajane said the recapitalisation of SAA has been on the cards since then-finance minister Pravin Gordhan tabled the Budget in February, though a figure had yet to be determined.

SAA’S long-term strategy is under review by Seabury consulting group. – ANA