It will come as news to no one that SAA is in the toilet, the Finance Minister fiasco just the byproduct of a business that has been on its dying legs for years.

What may come as a surprise is just how self-aware they were, even filing an urgent application to get an interdict preventing the media from publishing the not-so-secret internal memo.

The Johannesburg High Court dismissed that application, meaning we can now snoop into what the big dogs have been saying behind closed doors. TimesLive with some of the juicier bits:

SAA boss Dudu Myeni didn’t want the South African public to know that SAA was “insolvent” and that they are described as “reckless” in the memorandum.

The main aspect addressed in the memorandum is the deal SAA made with Airbus with regards to new aircrafts which SAA is not able to pay for as agreed in the Purchase Agreement…

The former Chief Financial Officer (CFO), Wolf Meyer, said that it would not be possible for SAA to complete their Airbus transaction and pay all of their creditors.

“The CFO has advised that SAA will be unable to pay its debts as and when they become due should SAA pay the PdP’s (Predetermined Payment). SAA does not have money to pay both.”

Meyer has since resigned.

Further, the memorandum states that SAA is trading under insolvent circumstances.

“Based on a reliance on a going concern and the inability of the auditors to sign off on the annual financial statements, SAA has been and remains technically insolvent. Accordingly, SAA is financially distressed and trading under insolvent circumstances.”

It is also stated that Myeni’s decision to continue with the Airbus-transaction worsens SAA’s already weak financial position.

Well isn’t that just charming? What’s more, according to the Companies Act, the Board “is required to file for business rescue and liquidations”. Failure to do this could result in the likes of Myeni facing fines or imprisonment, so it’s no wonder the board came with hands clasped open asking for money.

Sorry Nene, you may have done the right thing but the Weekend Finance Minister was lurking in the wings to Zuma’s bidding anyway.

You can read the memo in full HERE.

[sources:fin24,timeslive]