SAA after Business rescue

[Volo]

Every day that they can getaway without the Takatso deal is a test by the DPE to see if they can make it without the deal .
Somehow they are getting money to keep them afloat - they simply cant be trading within their own resources especially since they must have had to lay out a fair amount for their foreign adventures.

[GL]

And so SAA reports a loss - of R776m over 9 months - despite being just a fraction of its former size it is still on track to lose R1 billion this year.

Deja Poo

https://saflyer.com/saa-makes-a-loss-of ... -9-months/

[Volo]

Near as I can workout SAAs entire salary bill for the entire year is likely to be between those two figures. Given that fact alone they are probably trading recklessly in terms of company law which is illegal .
If their board were worth anything they should be advising the DPE that they are not a viable concern going forward as they are now and either ask the DPE for the R30 billion they would need to make them a viable entity or close down .

[Whirly]

Near as I can workout SAAs entire salary bill for the entire year is likely to be between those two figures. Given that fact alone they are probably trading recklessly in terms of company law which is illegal .
If their board were worth anything they should be advising the DPE that they are not a viable concern going forward as they are now and either ask the DPE for the R30 billion they would need to make them a viable entity or close down .

Tell the DPE it is not viable and lose your lucrative pay? Not going to happen as long as the taxpayers are forking out.

Whirly.

[Volo]

https://www.da.org.za/2024/02/withdrawa ... T4ArR9qWG4

[Volo]

Visit da.org.za



Withdrawal of SAA Bill part of Gordhan’s cover up on SAA/Takatso deal
Issued by Farhat Essack MP – DA Shadow Deputy Minister of Public Enterprises
16 Feb 2024 in News
The withdrawal of the South African Airways Repeal Bill (the Bill) from the Parliament Portfolio Committee on Public Enterprises by Minister Pravin Gordhan is yet another confirmation of his wider plan to cover up the details of the Share Sale and Purchase Agreement between SAA and its newly found equity partner Takatso.

Even as he conveniently hid behind time constraints in the current Parliament as reason for withdrawing the Bill, the real motivation for the withdrawal is that he did not want committee members asking for copies of the SAA/Takatso Share Sale and Purchase Agreement. He knew processing of the Bill was not going to proceed until this critical documentation was tabled in committee.

In a press statement issued after by the Committee on Wednesday, the Committee Chairperson – Khaya Magaxa, indicated that the Bill ‘had been withdrawn due to concerns that it will not be finalised on time’. This outcome was predictable because Gordhan tabled the Bill late and fully aware that the term of the current Parliament is about to expire.

The DA is the only party that has been fighting hard to obtain copies of the Share Sale and Purchase Agreement since the SAA/Takatso deal was announced in June 2021. Gordhan flatly ignored a PAIA application that we submitted in March 2022 and subsequent appeals that we submitted. Every time that the DA has cornered him in committee over the release of these critical documents, he has conveniently cited confidentiality concerns embedded in the deal.

What Gordhan fails to realise is that SAA is still a Schedule 2 public company under the Public Finance Management Act whose clear objective is ‘to secure transparency, accountability, and sound management of the revenue, expenditure, assets and liabilities of the institutions to which the Act applies’. In addition, the Companies Act of 2013 – under which SAA’s share capital is regulated, has clear disclosure requirements for corporate ownership transparency. As such, by refusing to disclose the SAA/Takatso Share Sale and Purchase Agreement, Gordhan is violating the provisions of the PFMA and the Companies with regards to legislated disclosure requirements.

For as long as Gordhan refuses to divulge the details of the sale agreement, the SAA/Takatso deal may be potentially and materially be non-compliant with law. Parliament will not agree to be coopted into Gordhan’s nefarious attempts to sanitize a deal whose details they are not privy to.

Be part of the mission to rescue South Africa, get help registering to vote at check.da.org.za

Publication Date
16 Feb 2024
Author
Farhat Essack

[Volo]

So there are now 3 of us out 60 million who think SAA v2 is a bad idea ?

[jimdavis]

So there are now 3 of us out 60 million who think SAA v2 is a bad idea ?

Ha ha ha - make that four Volo.

jim

[dollar]

So there are now 3 of us out 60 million who think SAA v2 is a bad idea ?

At least 5

We all said it was a k@k idea about 2000 posts ago. They kicked the can down the road for years, then when the pressure got unbearable, they paused for a bit. Cut some bits off the can and gave it a version II coat of paint. Then popped it back onto the road and continued to kick it. The fundamental issues were never addressed. The looting continues. This can be said of all the SOE's. There has been no fundamental change. The cause of the problem is not able to fix the problem.

[Snitch]

So SAA get another R1Billion in the 2024 Budget for”business rescue purposes “, while the entire SANDF only get a extra R3Billion (not even enough to buy the helicopter spares urgently required)

[snoopy]

So there are now 3 of us out 60 million who think SAA v2 is a bad idea ?

At least 5

We all said it was a k@k idea about 2000 posts ago. They kicked the can down the road for years, then when the pressure got unbearable, they paused for a bit. Cut some bits off the can and gave it a version II coat of paint. Then popped it back onto the road and continued to kick it. The fundamental issues were never addressed. The looting continues. This can be said of all the SOE's. There has been no fundamental change. The cause of the problem is not able to fix the problem.

They just added Turks and Gerries into their can kicking... with the SunExpress 737 size aircraft lease saga. But they can Mango? This is not a new hamster wheel they on, is it?...It just has a new paint scheme.

There be very creative shenanigans going on- follow the old money and demand the financials. Also of the Mango SAA affiliation and how it was used as instrument for SAA.

[Volo]

So SAA get another R1Billion in the 2024 Budget for”business rescue purposes “, while the entire SANDF only get a extra R3Billion (not even enough to buy the helicopter spares urgently required)

.........................
How is this possible ? They have been declared out of " Business rescue " .
Why has no one or party brought them before parliament for " Termination" as all they can do is continue to stumble even if Takatso finally make it in to their fold they will depleat their promised R 3billion ( governnent pension money ) in three years , and then what ?
Even if they receive that R 3 billion its nowhere enough to properly re- capitalise the airline.

[evanb]

So SAA get another R1Billion in the 2024 Budget for”business rescue purposes “, while the entire SANDF only get a extra R3Billion (not even enough to buy the helicopter spares urgently required)

.........................
How is this possible ? They have been declared out of " Business rescue " .
Why has no one or party brought them before parliament for " Termination" as all they can do is continue to stumble even if Takatso finally make it in to their fold they will depleat their promised R 3billion ( governnent pension money ) in three years , and then what ?
Even if they receive that R 3 billion its nowhere enough to properly re- capitalise the airline.

I know it will appear as scant consolation to hear this, but at the time of the business rescue process, there was about R12 billion that SAA owed to South African commercial banks backed by a Treasury guarantee. The banks could call these loans at any time and it would revert directly to the Treasury if SAA couldn't settle within the call period. This would create unwanted externalities since it could trigger options in the covenants of other government or government guaranteed debt instruments.

Government didn't want this since it create systematic risk but the Banks saw their leverage to negotiate a repayment plan, so the Business Rescue Plan carved out a ring-fenced account for this purpose to be paid off over several years. From a practical perspective, the cash transfer still needs to be appropriated each year, and needs to go through SAA. If they pay it directly, it could trigger the same options.

Additionally, in the business rescue agreement, the government agreed to pay for several other costs including retrenchment, unflown ticket liability, etc. Once again, these are paid over several years.

The appropriation since have been:
2020/21: R10.3 billion
2020/21 (special): R266.9 million
2021/22 R4.3 billion
2022/23 R1.8 billion
2023/24 R1 billion

Based on the original estimates around 2021, it was going to be R16.4 billion for the debt and R10.3 for other. It seems to be coming in quite a bit lower. I suspect they somehow hope that the equity partner will come to the table with R3 billion of equity.

[GL]

Thanks for those insights Evanb - but if SAA is running at a loss (776m over 9 months?), how are they funding ops?

[Joker11]

Thanks for those insights Evanb - but if SAA is running at a loss (776m over 9 months?), how are they funding ops?

Hard working South Africans. Cough, cough.

No serious. It would be great to know.