SAA: Govt not sure how to raise funds for bailout
Government on Wednesday said it was not sure where an urgent R10 billion to bailout South African Airways (SAA) would come from. The struggling national airline wants almost R20 billion, of which R10.5 billion is needed urgently.
The Department of Public Enterprises on Wednesday briefed Parliament about the performance of SOEs including SAA and SA Express. SAA is in desperate need of the multibillion-rand bailout, but the airline’s sole shareholder is still undecided on how to go about raising this money. Public Enterprises Deputy Minister Phumulo Masualle told MPs they were still in talks on how to raise the funds.
The department is securing funding to implement the business rescue plan, including funding of subsidiaries. It appointed Rand Merchant Bank to assist with identifying a strategic equity Partner for SAA
“The question of ‘where is this money going to come from’ will definitely be raised." DA MP Galeb Cachalia questioned the bailout of the struggling airline. “We’ve now been told that R10,5bn is going to be needed to save SAA and I would like to know exactly where this money is going to come from.”
It will now be up to Finance Minister Tito Mboweni and National Treasury to decide on the future of SAA when he tables his mini budget at the end of the month.
