SAA gets R5bn loan guarantee from govt
SAA now has to present its turnaround strategy after getting R5 billion loan guarantee from government.
JOHANNESBURG - South African Airways (SAA) was handed a lifeline after receiving a cash injection of R5 billion from government on Tuesday.
SAA has been struggling with financial troubles and resignations from its board members.
Public Enterprises Minister Malusi Gigaba said there are conditions to the capital granted and these will be announced soon.
Public Enterprises Department spokesperson Mayihlome Tshwete said this will be for a period of two years.
"One of the most critical requirements to point out at this moment is that a turnaround strategy is expected to be presented to National Treasury and the department to plan the way forward."
The newly appointed members are Vuyisile Kona, Andile Mabizela, Andile Khumalo, Bongisizwe Mpondo, Dr Rajesh Naithani, Carol Roskruge, Raisibe Lepule and Nonhlanhla Kubeka.
Kona is the new chairman.
Former chairman Cheryl Carolus said she left the company last week because there was a breakdown in communication between the board and Gigaba.
Six other board members resigned in the same week as Carolus.