Gordhan Rejects SAA’s Request For R10 Billion

Public Enterprises Minister Pravin Gordhan has rejected the South African Airways (SAA) business rescue practitioners’ request for a further R10 billion for funding.

In a letter addressed to Les Matuson and Siviwe Dongwana on Tuesday, the minister said government didn’t have the money.

Cash strapped SAA operations have been shut down because of the COVID-19 lockdown.

Matuson and Dongwana were brought in to save the broke airline after undergoing business rescue last year.

But the outbreak of coronavirus has brought their plans to a complete standstill.

Now they’ve been dealt another blow with government refusing to give them any more money to sustain the business rescue process.

Minister Gordhan said COVID-19 had stretched national resources, the airline industry was devastated globally and the practitioners must consider options with the resources at their disposal.

EWN