Parly told that the bulk of SAA business rescue funding spent on consultants

SAA entered into business rescue in December of 2019 and finished the expensive process in April.

Picture: South African Airways

CAPE TOWN - SAA’s business rescue process has cost R230 million, with the two business rescue practitioners pocketing R78 million.

The amounts were revealed by the state-owned airline’s interim CEO Thomas Kgokolo in Parliament on Friday.

Kgokolo and the airline's board briefed the appropriations committee on the new Special Appropriations Bill to help fund SAA subsidiaries.

SAA entered into business rescue in December of 2019 and finished the expensive process in April.

Interim CFO Fikile Mhlontlo said the bulk of the money was used to pay consultants.

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“There’s a total of R251 million. Included in there are various consultants and lawyers. The actual amount paid to BRPs is R78 million and the total sum is R231 million,” said Mhlontlo.

SAA has also paid out voluntary packages and employee liabilities adding up to R2 billion. The money paid to passengers owed by the airline amounts to R800 million.

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