SAA Gets R10 Billion Special Appropriation – Reports have it that the National Treasury has agreed to hand the South African Airways (SAA) R10 billion to clean up its debts.
It’s on record that SAA has a debt of R17.9 billion hanging around its neck. With respect to that, the country and the decision makers have been toying with the idea of rescuing SAA from its financial afflictions.
For this course, we have reported that the Finance Minister, Malusi Gigaba wants to take R6 billion from Pensioner’s money. Also, we have detailed the government’s plan to transfer national revenue funds to the airways.
The government has made it clear that improving the financial positions of SAA through recapitalization has been on its agenda. While several options are being explored, the government promised to provide an update on its decision during the Medium Term Budget Policy Statement in October 2017.
This is September and the National Treasury is set to hand SAA a special appropriation of R10 billion come end of the month. National Treasury’s new Director-General, Dondo Mogajane confirmed this when he said:
“(The special appropriation) will be for R10 billion … because that will cover everything.”
Mogajane made the comment while he was briefing MPs on SAA’s latest quarterly results. The bill for the special appropriation will be tabled soon and, the Director-General is hoping the legislature would okay the move.
However, he divulged that the Treasury will find another way to help SAA if MPs refuse to support the R10 billion special appropriation.
According to Mogajane, while nine lenders have agreed to roll over debt that would become due at the end of the month, Citibank agreed to roll over a portion of R1.761 billion SAA is due to repay by the 30th.