Moneyweb writes that it has established that SA Airways (SAA) paid managers’ salaries on 25 May from a VAT refund, while the rest of staff were paid on 27 May from a loan the airline secured.  

There is said to be considerable doubt as to whether the airline will be able to pay staff and suppliers in June.  This follows a report in the Sunday Times that Standard Chartered Bank rejected a request by SAA to extend a loan facility that matures at the end of June.  “We remain optimistic that the company will meet its loan obligations as these become due through negotiations with lenders and other initiatives,” said Musa Zwane, SAA Acting CEO.  There has been speculation that the Public Investment Corporation (PIC) is putting together a recapitalisation plan, despite the Government Employee Pension Fund (the PIC’s biggest source of funds) issuing a statement denying this last month.  The GEPF reiterated this on Monday, saying that its position with regards to funding SAA “still stands as per the media statement that was issued by the fund, however, if there are any changes the GEPF will engage with the PIC on this matter as we always do.”

• Read this report by Warren Thompson in full at Moneyweb

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