DPE: SA will soon know how the R10 bn needed to revive SAA will be availed
Finance Minister Tito Mboweni will table an adjustment budget next month where he’s expected to announce where government will get about R10 billion, which will be used to get South African Airways off the ground.
JOHANNESBURG – The Public Enterprises Department says South Africans will soon be informed how government’s budget will be adjusted to reprioritise funding for a new airline.
Finance Minister Tito Mboweni will table an adjustment budget next month where he’s expected to announce where government will get about R10 billion, which will be used to get South African Airways (SAA) off the ground.
Public enterprises Director-General Kgathatso Tlhakudi said they now need to establish a mechanism through which to channel the funds.
It’s been a tough few months for unions, employees as well as taxpayers waiting on government’s announcement about how SAA will be funded after operations came to a halt due to financial problems among other issues.
Despite missing a deadline last week to secure R10.4 billion, government has committed that it will never allow SAA to fail.
Public Enterprises director-general has assured that money will be made available for the airline.
“The process is unfolding this week to ensure that the funds that Business Rescue Practitioners earlier so that the commitments that we have made to creditors and others can be met.’
SAA was placed under business rescue in December last year and a restructuring plan has since been approved, which will see voluntary severance packages paid to over 2,700 employees who will be retrenched.