Gordhan asks for 2nd extension on SAA financial reports

Finance Minister Pravin Gordhan has requested a second extension to enable South African Airways (SAA) to table its annual report and annual financial statement.

Parliament had previously granted SAA an extension up to February 15 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,” the Finance Ministry said in a statement of Tuesday.

SAA has been surviving on about R14bn of government-debt guarantees and last posted a full-year profit in 2011.

The company, which has requested a further guarantee from Treasury, has had seven acting or permanent chief executive officers in less than four years.

SAA submitted an application for a going concern guarantee on December 21 2015 which was under consideration.

“Given the potential implication for the sovereign and for the economy, the matter requires extensive and careful consideration. SAA is unable to finalise their annual financial statements for the tabling in Parliament until a decision has been made on the going concern application,” the ministry said.

Gordhan requested that the tabling be extended to March 15 2016.