LIVE BLOG: Govt to investigate offers to purchase equity in SA Express

Ministers in the Economics Cluster which comprises of Public Enterprises; Public Works and Infrastructure; Small Business Development; Tourism; Trade and Industry; and Transport appear in the NA.

Gordhan says unfortuantely, employees may have to be let go in no solution is found for SA Express.

Part of the damage at SA Express involves stolen engines and overcharging for parts.

He says they regret the condition employees find themselves in and they will continue to try doing their best.

Gordhan says money as made available through the COVID TERS fund to provide some funding for employees. This was provided for two months ago. He says they will continue approaching UIF to compensate employees. He says they regret the condition employees find themselves in and they will continue to try doing their best.

Gordhan says the people who are responsible for the damage at SA Express have not been dealt with properly. He says the destruction took place over a period of years. While the CEO and board di their best to save it, it was already a sinking ship.

They will investigate any offers to purchase equity in the airline.

Gordhan says Public Enterprises will continue to assist in finding funds so the affected employees that have been loyal to the airline will not be left without any funds. He adds they hope the difficulties will be shortlived.

The department will do all it can to cooperate with the liquidators.

This, says Gordhan, resulted in the airline not being able to resume operations.

Replying to a question on SA Express's financial difficulties, Gordhan cites poor judgement, poor leadership and not being able to guarantee a R1billion loan agreement from 2019 led to the current situation.