Broke SAA in talks for loan





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  1. #1
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    Default Broke SAA in talks for loan

    SAA confirmed that it is in discussions with the Public Investment Corporation (PIC) for a loan, as the national carrier wants to diversify its debt portfolio, said the chief financial officer Phumeza Nhantsi...

    Should we perhaps start a poll to see who is surprised by this news?


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    Default Re: Broke SAA in talks for loan

    Or no need for poll if only one answer will be selected?


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    Default Re: Broke SAA in talks for loan

    I see more money being borrowed from the state pension fund
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    Default Re: Broke SAA in talks for loan

    Cape Town – SAA confirmed that it is in discussions with the Public Investment Corporation (PIC) for a loan, as the national carrier wants to diversify its debt portfolio, said the chief financial officer Phumeza Nhantsi.


    SAA was appearing before the standing committee on finance on Tuesday about its quarterly report and turnaround plan. In an initial document, distributed to committee members on Monday, SAA stated that it made a loss of R734m year to date, which is for the months of April and May 2017.


    Alf Lees, Democratic Alliance (DA) spokesperson on finance, insisted during the briefing on getting clarity over rumours that the airline approached the PIC for a loan from the Compensation Fund and Unemployment Insurance Fund (UIF).


    The PIC manages the investments on behalf of both these funds.


    SAA reportedly first approached the Government Employees Pension Fund (GEPF), also administered by the PIC, for a loan. The GEPF, according to Lees refused to bail SAA out.


    The meeting between SAA and the PIC allegedly took place on Friday, Lees said. “Did the meeting happen? We need to know this.”


    He also wanted to know if SAA managed to renegotiate the management of its loans, as an amount of R9bn is due on June 30.


    “Why are you waiting three days before the loan deadline?” Lees asked.


    SAA previously acknowledged in a statement that R9bn will be due and payable to “one lender”.


    Although SAA did not want to name the “lender” it is alleged that it is Standard Chartered Bank which has declined to renew SAA's loan facilities.


    Nhantsi told journalists after the briefing that the remaining debt obligation after negotiations is R2.3bn and that SAA managed to negotiate that the balance be rolled over.


    She pointed out that it is not a case of lenders “recalling” SAA’s loans. “The loan is maturing and one of the lenders said it would not extend the loan.”


    Asked if SAA has the cash reserves to honour the repayment, Nhantsi said SAA is working with government to “find a solution”.


    National Treasury director general Dondo Mogajane said earlier during the briefing that although the loan negotiations are at a sensitive stage, he was confident that the loan would be repaid by the June 30-deadline.


    He also stressed that a final decision on an equity partner has not been made and that a number of avenues are being considered. As previously, Mogajane did not rule out the PIC as an investor option.


    Asked for comment about the likelihood of granting a loan to SAA, PIC spokesperson Sekgoela Sekgoela told Fin24 by email that it would be inappropriate for the PIC to comment further on information that may either be “speculative or market sensitive”.


    “The PIC’s investment decisions will continue to be directed by its own investment processes and the investment mandates of its clients, which include the UIF and funds of the Compensation Commissioners.”


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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by Redman View Post
    SAA was appearing before the standing committee on finance on Tuesday about its quarterly report and turnaround plan.
    Surely the powers that be must be dizzy by now from all the turning around...

    They've had more turnaround plans than the French in WWII.
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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by Redman View Post
    wants to diversify its debt portfolio,
    Why don't they just come out and say they want a longer list of people they can't pay back?..................
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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by JohnnoK View Post
    Why don't they just come out and say they want a longer list of people they can't pay back?..................
    I had a chuckle at that quote. A lot of things that I would like to diversify, but my debt portfolio? Not so sure


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    Default Re: Broke SAA in talks for loan

    Ja, about the only people in favour of that will be the ones that are already owed, in an attempt to spread the misery......

    They say that "Misery enjoys company"....
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    Default Re: Broke SAA in talks for loan

    Banks should be subpoenaed to show where the money is going. Cancel signatories.
    There is no task too simple for some people to complicate !



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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by duncang View Post
    Banks should be subpoenaed to show where the money is going. Cancel signatories.
    Banks ain't too interested....even GPEF (government pension fund) wasn't interested.
    Discussions with PIC for loan....and new dep finance min is chairman....guess the outcome
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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by Prof View Post
    Banks ain't too interested....even GPEF (government pension fund) wasn't interested.
    Discussions with PIC for loan....and new dep finance min is chairman....guess the outcome
    Banks won't rock the boat because they have 260 dorps bank accounts with unlimited overdrafts at top % rates, guaranteed by the Gov/us the taxpayers.....
    There is no task too simple for some people to complicate !



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    Default Re: Broke SAA in talks for loan

    I fly a lot and our travel lady books us on SAA most of the time. Every time i get on a plane of theirs one wonders how the dept has influenced the maintenance on them planes


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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by Tweeling View Post
    I see more money being borrowed from the state pension fund
    excellent, maybe then somebody at GEPF will start asking for some proper board due diligence..........
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    Default Re: Broke SAA in talks for loan

    I don't know why we still need a state airline?

    Just a money pit, that billions that get lost every year could have been used so much better elsewhere.

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    Default Re: Broke SAA in talks for loan

    And SAA Cabin Crew are jumping up and down about the corruption within SAA - go figure!!
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    Default Re: Broke SAA in talks for loan

    SOE's are simply a means for the government of the day to distribute wealth very effectively. SAA and others will continue to rack up losses and be bailed out by taxpayers and other unwilling funders. They provide jobs for thousands who would otherwise be unemployed, and opportunities for lucrative supply contracts to be awarded to cronies and pals.

    SAA is not a national airline because we need one, it exists for the reasons outlined above.
    - Nothing comes at a higher price than that which is free.

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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by Blue Shirt View Post
    SOE's are simply a means for the government of the day to distribute wealth very effectively. SAA and others will continue to rack up losses and be bailed out by taxpayers and other unwilling funders. They provide jobs for thousands who would otherwise be unemployed, and opportunities for lucrative supply contracts to be awarded to cronies and pals.

    SAA is not a national airline because we need one, it exists for the reasons outlined above.
    It is an open Purchase Order for connected Comrades


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    Default Re: Broke SAA in talks for loan

    I say well done to the cabin crews for laying these charges.BUT.Will it ever be investigated properly and the guilty members brought to book.I very much doubt it.
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  19. #19
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    Default Re: Broke SAA in talks for loan

    It was always going to be a heated meeting – the leadership of the embattled South African Airways was appearing before Parliament’s finance committee to account for the airline’s performance in the last quarter of the 2016/17 financial year which ended on March 31.


    But Dudu Myeni was the only SAA board member who arrived for the meeting, accompanied by Phumeza Nhantsi who was appointed chief financial officer last month, and another official acting in acting CEO Musa Zwane’s absence.


    Members of Parliament were outraged. A lot has been written about Myeni in the media in recent weeks, and some MPs were hoping her colleagues on the board would give clarity on those issues. A debate ensued on whether to continue with the meeting or not, considering that what Myeni says may be contested by her board colleagues at a later stage.


    A majority of ANC MPs felt the meeting could not continue until more board members were present. It seemed like a logical decision, until the one disagreeing ANC MP, Peace Mabe, who is also new in the finance committee, accused her comrades of trying to excite the opposition. She wanted Myeni to be allowed a chance to make a presentation.


    Mabe lashed out at committee chairperson Yunus Carrim, who inferred that Mabe – because she was new in the committee and had not attended many of its meetings – could be overruled.


    “What has that got to do with what I’m about to say now. You don’t want me to participate in this committee. It seems as if you don’t want me to participate in this committee. Why?” she began.


    Wagging a finger at Carrim, she continued: “You are ill-treating me and the reasons why I don’t attend these meetings is because you came to my desk in the National Assembly and all the things you said to me, they killed my confidence in coming to participate in this meeting.”


    Mabe, who was by now holding back tears, continued: “You cannot treat me like this … I am here today, I want to make my contributions and you tell me that I differ with others. There is no study group decision on this issue.”


    She warned that ANC MPs can’t want “to excite the opposition” and be negative, and added that Myeni and Nhantsi should be heard by the committee.


    It became clear there was more to the argument, but neither Mabe nor Carrim went into the details.


    Carrim however revealed that there had been several attempts every day since last Wednesday to stop the meeting from going ahead. These involved some officials in the Treasury and some people within SAA via the Treasury, he said.


    Carrim said the reasons had been several and ranged from “let’s postpone it without any substantial explanation to “let’s postpone it because the quarter has not ended [the quarter ended in March]” to ‘questions asked by MPs relate to strategy and we are in the process of finalising” to officials saying they are worried about going to Parliament three days before the extension of loans by the lenders.


    This may jeopardise the negotiations, the officials had argued.


    Carrim noted that MPs wanted the meeting to be postponed because some felt Myeni no longer represented the SAA baord, while others wanted to protect her from being “rigorously critiqued here”.


    He warned: “Those who want the meeting to be postponed, you may be falling on the lap of the section that didn’t want this meeting to take place. There was an attempt to stop this meeting taking place. Those of you who are asking for it not to go ahead, unintended or consciously are serving that purpose,” said Carrim.


    The toing and froing took a solid 100 minutes until the DA’s Alf Lees reminded the meeting of the crisis facing SAA. Lees wanted the meeting to continue, even if it is at a later stage this week.


    “This airline is on the verge of bankruptcy. It’s our information that they battled to pay salaries in May and will battle to pay salaries in June. Whether it’s true or not, I don’t know but I can’t have the opportunity to check on that.


    “What I do know is that there is R9 billion worth of loans that they have to either roll over or repay by the 30th of June. If those loans are not rolled over, this airline will be bankrupt, it will close down. This has huge implications not only for the airline, but for our economy and for thousands of employees,” he said.


    “We can’t simply put this matter off until September. This is not about Dudu Myeni, this is about the future of this airline which is about to close down if they don’t get the money to continue,” added Lees.


    The official acting in Zwane’s place said they were engaging “with the financials to rollover the loans and to rearrange the loans… engagement with all the financials is on-going and the discussions are at as sensitive stage”.


    He said SAA has been able to pay salaries as and when they became due even when there are financial pressures.


    “There has not been any risk of salaries not being paid,” he added. The meeting was postponed to August without any discussion of the quarterly report.
    Last edited by Redman; 2017/06/28 at 12:26 PM.


  20. #20
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    Default Re: Broke SAA in talks for loan

    Quote Originally Posted by Redman View Post
    It was always going to be a heated meeting – the leadership of the embattled South African Airways was appearing before Parliament’s finance committee to account for the airline’s performance in the last quarter of the 2016/17 financial year which ended on March 31.


    But Dudu Myeni was the only SAA board member who arrived for the meeting, accompanied by Phumeza Nhantsi who was appointed chief financial officer last month, and another official acting in acting CEO Musa Zwane’s absence.


    Members of Parliament were outraged. A lot has been written about Myeni in the media in recent weeks, and some MPs were hoping her colleagues on the board would give clarity on those issues. A debate ensued on whether to continue with the meeting or not, considering that what Myeni says may be contested by her board colleagues at a later stage.


    A majority of ANC MPs felt the meeting could not continue until more board members were present. It seemed like a logical decision, until the one disagreeing ANC MP, Peace Mabe, who is also new in the finance committee, accused her comrades of trying to excite the opposition. She wanted Myeni to be allowed a chance to make a presentation.


    Mabe lashed out at committee chairperson Yunus Carrim, who inferred that Mabe – because she was new in the committee and had not attended many of its meetings – could be overruled.


    “What has that got to do with what I’m about to say now. You don’t want me to participate in this committee. It seems as if you don’t want me to participate in this committee. Why?” she began.


    Wagging a finger at Carrim, she continued: “You are ill-treating me and the reasons why I don’t attend these meetings is because you came to my desk in the National Assembly and all the things you said to me, they killed my confidence in coming to participate in this meeting.”


    Mabe, who was by now holding back tears, continued: “You cannot treat me like this … I am here today, I want to make my contributions and you tell me that I differ with others. There is no study group decision on this issue.”


    She warned that ANC MPs can’t want “to excite the opposition” and be negative, and added that Myeni and Nhantsi should be heard by the committee.


    It became clear there was more to the argument, but neither Mabe nor Carrim went into the details.


    Carrim however revealed that there had been several attempts every day since last Wednesday to stop the meeting from going ahead. These involved some officials in the Treasury and some people within SAA via the Treasury, he said.


    Carrim said the reasons had been several and ranged from “let’s postpone it without any substantial explanation to “let’s postpone it because the quarter has not ended [the quarter ended in March]” to ‘questions asked by MPs relate to strategy and we are in the process of finalising” to officials saying they are worried about going to Parliament three days before the extension of loans by the lenders.


    This may jeopardise the negotiations, the officials had argued.


    Carrim noted that MPs wanted the meeting to be postponed because some felt Myeni no longer represented the SAA baord, while others wanted to protect her from being “rigorously critiqued here”.


    He warned: “Those who want the meeting to be postponed, you may be falling on the lap of the section that didn’t want this meeting to take place. There was an attempt to stop this meeting taking place. Those of you who are asking for it not to go ahead, unintended or consciously are serving that purpose,” said Carrim.


    The toing and froing took a solid 100 minutes until the DA’s Alf Lees reminded the meeting of the crisis facing SAA. Lees wanted the meeting to continue, even if it is at a later stage this week.


    “This airline is on the verge of bankruptcy. It’s our information that they battled to pay salaries in May and will battle to pay salaries in June. Whether it’s true or not, I don’t know but I can’t have the opportunity to check on that.


    “What I do know is that there is R9 billion worth of loans that they have to either roll over or repay by the 30th of June. If those loans are not rolled over, this airline will be bankrupt, it will close down. This has huge implications not only for the airline, but for our economy and for thousands of employees,” he said.


    “We can’t simply put this matter off until September. This is not about Dudu Myeni, this is about the future of this airline which is about to close down if they don’t get the money to continue,” added Lees.


    The official acting in Zwane’s place said they were engaging “with the financials to rollover the loans and to rearrange the loans… engagement with all the financials is on-going and the discussions are at as sensitive stage”.


    He said SAA has been able to pay salaries as and when they became due even when there are financial pressures.


    “There has not been any risk of salaries not being paid,” he added. The meeting was postponed to August without any discussion of the quarterly report.
    Acting like a bunch of children.


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