PARLIAMENT – In a report to Parliament’s watchdog public accounts committee, South African Airways has insisted that it cannot submit its outstanding annual financial statements (AFS) until the government guarantees its going concern status through additional funding.
The SAA board acknowledged in the report sent to the Standing Committee on Public Accounts on Monday that it received further financial help in the medium-term budget policy statement, but said it still needs “specific commitments for its working capital requirements”, and added that “inconsistent” remarks from government about further funding has left it in limbo.
“Securing funding continues to be a challenge. SAA cannot finalise its AFS, within the prescribed time, until the going concern status is confirmed. This can only currently be enabled by the shareholder through financial support in the form of additional equity capital (for working capital purposes) or issuing of guarantees in support of loan funding in a timely manner,” it added.
“To date, the shareholder has not confirmed this.”
At issue is SAA’s outstanding annual financial statements for 2017/18 and 2018/19.