Zuma/Gordhan rift over SAA ‘is false’
Nothing to worry about, says Presidency
South African President Jacob Zuma’s rift with Finance Minister Pravin Gordhan over a new board for South African Airways (SAA) is false, the Presidency said on Sunday, after a report claimed that Hong Kong is about to ground all flights in the next two weeks due to the crisis at SAA.
The allegation being reported is that Gordhan is withholding a R5 billion Treasury guarantee that will allow SAA to table its annual financial statements, until a new board that excludes controversial chairperson Dudu Myeni is approved by Zuma.
The Presidency said on Sunday that the “rumours and gossip published in today’s Sunday Times on the matter are false and regrettably the Presidency was not asked for comment by the newspaper”.
“The Presidency and the National Treasury are working well together on this issue and are seeking solutions together,” it said.
The newspaper reported that Hong Kong’s registrar of companies “has given the airline until September 6 to submit its annual financial statements or face possible deregistration, which would mean SAA would no longer be able to fly there”.
“Hong Kong is one of our international routes that is profitable and we will suffer a huge loss in revenue,” a source told the Sunday Times. “The International Air Transport Association will also announce this to other airlines, which means that every other company doing business with us will want to work on a cash-upfront basis.”
On 14 July, Gordhan requested parliament to grant an extension to 15 September for the tabling of the annual financial statements.
“SAA’s annual financial statement cannot be finalised on a going concern basis until a decision has been taken on the guarantee application,” the Treasury said on 14 July. “Given the potential implication for the sovereign and for the economy the matter has required extensive and careful consideration.”
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The allegation being reported is that Gordhan is withholding a R5 billion Treasury guarantee that will allow SAA to table its annual financial statements, until a new board that excludes controversial chairperson Dudu Myeni is approved by Zuma.
The Presidency said on Sunday that the “rumours and gossip published in today’s Sunday Times on the matter are false and regrettably the Presidency was not asked for comment by the newspaper”.
“The Presidency and the National Treasury are working well together on this issue and are seeking solutions together,” it said.
The newspaper reported that Hong Kong’s registrar of companies “has given the airline until September 6 to submit its annual financial statements or face possible deregistration, which would mean SAA would no longer be able to fly there”.
“Hong Kong is one of our international routes that is profitable and we will suffer a huge loss in revenue,” a source told the Sunday Times. “The International Air Transport Association will also announce this to other airlines, which means that every other company doing business with us will want to work on a cash-upfront basis.”
On 14 July, Gordhan requested parliament to grant an extension to 15 September for the tabling of the annual financial statements.
“SAA’s annual financial statement cannot be finalised on a going concern basis until a decision has been taken on the guarantee application,” the Treasury said on 14 July. “Given the potential implication for the sovereign and for the economy the matter has required extensive and careful consideration.”
NEWS24
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