TREASURY has categorised its R13bn guarantee for financially fragile state owned airline SAA as a "material impairment" in its 2015-16 financial statements tabled in Parliament Thursday.The provision was highlighted in the auditor-general’s report, which is included in the annual report.Notes to the financial statements say that the impairment value remained the same as the previous year, "due to the financial difficulties experienced by SAA. However, the present value of the expected future cash flows was calculated at R18.8bn. The impairment is limited to the total value of the investment."READ THIS: Repeat after me: there are no free lunchesIt noted that SAA had made progress in many areas of its long-term turnaround strategy, including savings on personnel costs through rationalisation.A total of 242 voluntary severance packages were approved in SAA and 94 in SAA Technical, amounting to savings of R134m versus a target of R181m.SAA is due to table its 2014-15 and 2015-16 financ...
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