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Finance Promised To SAA To Be Granted In January

EWN

The R10,5 billion promised to SAA in the finance minister’s medium-term budget speech will only be granted in January, meaning the government needs bridging capital from the banks.

The Department of Public Enterprises has come out defending the billions granted to embattled SAA during the medium-term budget statement.

Public Enterprises Director-General Kgathatso Tlhakudi said, “South Africans deserve to be told the full story. There are people that are employed at the airline. There’s a business that has been developed over many years. This is very strong brand. Very strong infrastructure. Very strong partnership. It’s a good business that was badly run.”

A new board and CEO will be appointed soon.

For now, the Department of Public Enterprises is in sensitive talks with the banks, to provide funding for the business rescue practitioners to at least execute part of the plan, prioritising the workers.

It is unclear when the airline will be taken out the care of the business rescue practitioners.

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