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Is there is any link between the need to address the immediate financial position of the sAA and the SAA not being able to finalise its 2012 Annual Report timeously

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Is there is any link between the need to address the immediate financial position of the sAA and the SAA not being able to finalise its 2012 Annual Report timeously
24/10/2012

 

Question for oral reply

Question no.: 96

Date of publication: 24 October 2012
96. Mr M P Sibande (ANC-Mpumalanga) to ask the Minister of Public Enterprises:

(1) Whether there is any link between the (a) need to address the immediate financial position of the SA Airways (SAA) and (b) the SAA not being able to finalise its 2012 Annual Report timeously; if not, what is the position in this regard; if so, what are the relevant details;

(2) (a) why has the SAA not been able to finalise its 2012 annual report timeously and (b) what action will be taken to address such failure? CO710E

Reply:

According to SA Airways (SAA):

(1)(a-b) SAA was unable to finalise the 2012 annual report by 31 August 2012 as a guarantee was required in order for its financial statements to be signed off by the auditors as a going concern. The guarantee was granted on 26 September after extensive discussions with the Minister of Finance and after ensuring that all possible alternative options of securing funds from sources were exhausted. The financial statements were signed off immediately thereafter.

(2)(a-b) The delay in finalising the annual report by 31 August 2012 was not a failure but arose as a result of the need to ensure that all other options for securing funds for SAA had been considered. Ultimately, Government had to step in to provide a guarantee to the airline to sustain its operations. The turn-around plan which is meant to ensure the airline is sustainable for the foreseeable future will assist in ensuring that this does not become a regular occurrence.  

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