The Development Bank of Southern Africa’s move to give South African Airways (SAA) a lifeline has on Wednesday been criticised by experts who say it was not the bank’s mandate.
The wholly-owned government entity has pledged R3.5 billion to the struggling national carrier.
Some political parties say the money given to SAA may be redirected from important development projects meant for millions of South Africans.
But political economist Matlala Setlhalogile said government was desperate.
“This entity has been trying to improve its financial health for over a decade. It was always going to be a tough one for National Treasury.”
Corporate lawyer Vaughn Harrison doubts SAA will be able to repay the loan.
“This money has already been given to a failing entity that I think owes over R20 billion.”
SAA is currently under business rescue, with the government hoping to bring in an equity partner to stabilise the company.
More Stories
Thabo Bester Did Not Die In A Fire But Escaped From Prison – DCS
SA Won’t Go Beyond Stage 6 Power Cuts – Ramokgopa
Medical Fees Rise By 5.3% In February – Stats SA
Power Cuts Case Continues
Ramokgopa Tours Troubled Tutuka
EFF’s No-Confidence Motion Against Speaker Fails
The National Treasury Should Do More To Alleviate Household Costs Of Loadshedding
Eskom Concedes That Outrage Over Power Cuts Warranted
Electricity Minister To Visit All Power Stations
Over 500 Arrested Nationwide During Protest Action
Malema Rubbishes Concerns That EFF Nationwide Protest Will Turn Violent
Santaco Says Taxi Industry Will Operate As Normal