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Gordhan Rejects SAA’s Request For R10 Billion

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.