SAA says it's struggling to get over R1 billion out of Zimbabwe
Zimbabwe has been facing a foreign exchange crunch since 2016, leaving several other airlines in the same predicament.
An Airbus A340-642 operated by South African Airways takes off from JFK Airport on August 24, 2019. Picture: Bruce Bennett / Getty Images via AFP
CAPE TOWN - South African Airways (SAA) said it was still struggling to get over US$50 million out of Zimbabwe.
Equating roughly to around R1 billion, Parliament’s Standing Committee on Public Accounts (SCOPA) heard that the ongoing battle to repatriate the funds, largely from ticket sales, was continuing.
It’s prompted SCOPA chairperson Songezo Zibi to question whether it isn’t time to attach assets in South Africa for the trapped money.
Zimbabwe has been facing a foreign exchange crunch since 2016, leaving several other airlines in the same predicament.
SAA said while it was liquid at present, it would need a cash injection to expand its operations in the future.
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Board chairperson, Derek Hanekom, said that the legacy debt issue with Zimbabwe persisted, money that could be used for this purpose.
"We've been in serious contact with the Zimbabwean government. R1.1 billion is not a small amount of money and it's not been easy."
SAA chief financial officer, Lindsay Olitzski, said an agreement had been reached for $9 million to remain in Zimbabwe for SAA's local use.
"The remaining $50 million they indicated a payment plan at an amount of $1 million per quarter. Now that is a very long payment plan, that to date, we have not yet received funds."
Transport Minister Barbara Creecy said she would consider whether to take the matter up on a diplomatic level once she received a full report from the airline.