Public Enterprises Dept: Fiscus no longer able to extend bailouts to SAA
SAA is to receive an R5 billion bailout from Treasury for immediate financial stability.
JOHANNESBURG - The Ministry of Public Enterprises says South African Airways (SAA) needs to implement changes that will make the airline financially stable.
SAA is to receive an R5 billion bailout from Treasury for immediate financial stability, but the ministry says there is still turbulent times ahead for the national carrier.
The announcement was made during Finance Minister Tito Mboweni’s Medium-Term Budget Policy Statement in October.
It says senior management at SAA needs to identify problems and implement solutions as soon as possible to avoid further financial strain.
“If we look at the Medium-Term Budget Policy Statement, it is clear that the fiscus is no longer either willing or able to extend further bailouts to the national carrier,” says the spokesperson of the Ministry of Public Enterprises, Adrian Lackay.
The department says corruption and maladministration have pulled the state-owned enterprise further into financial decay.
“The minister would want to see greater urgency from management and the board to indicate what interventions can be implemented immediately to try and bring the airline back to operational and financial sustainability,” says Lackay.