DA calls on Mboweni to carefully verify R21bn SAA loan from consortium

On Sunday, ‘City Press’ reported that a consortium of investors have made an unsolicited loan offer to SAA of R21 billion to save the financially crippled state-owned entity.

FILE: Finance Minister Tito Mboweni briefs the media ahead of the Medium Term Budget Policy Statement. Picture: Cindy Archillies/EWN

JOHANNESBURG – The Democratic Alliance (DA) has called on Finance Minister Tito Mboweni to carefully verify the R21 billion private loan being offered to the financially embattled South African Airways (SAA).

On Sunday, City Press reported that a consortium of local and international investors have made an unsolicited loan offer to SAA of R21 billion to save the financially crippled state-owned entity.

Earlier this year, in his budget speech Mboweni announced a R5 billion bailout would be afforded to the airline.

But SAA needs R21 billion by the year 2021 to be profitable.

The DA’s Alf Lees says SAA needs to be put into business rescue.

“The R21 billion offer may be too good to be true and, in the end, the only solution will be to put SAA into business rescue.

“SAA is bankrupt and is only able to continue trading as a result of lenders having allegedly at the eleventh hour, provided short-term funding of an additional R3.5 billion until the end of March. This will bring the SAA loans, repayable by the end of March 2019, to a massive R13 billion.”

LISTEN: Consortium of investors offer SAA R21bn loan for 51% stake