MPs wanted to know whether the DBSA had caved in to political pressure to make the R3.5 billion loan to SAA, but DBSA chief investment officer and acting CEO Paul Currie’s response was an emphatic no.
Last week, the wholly-owned government entity has pledged the lifeline injection to the struggling national carrier.
South African economic growth has slowed over the last decade. Debt has climbed rapidly as the government scrambles to plug a widening budget deficit and bail out state firms plagued by mismanagement.
SAA is fighting for its survival after it entered a form of bankruptcy protection in December and cancelled some flights because of cash shortages.
Government officials are scrambling to work out how they can provide R2 billion ($138 million) of funds they promised when SAA entered a form of bankruptcy protection last month.
In a notice on its website, SAA says it is putting some of its aircraft up for sale to accommodate new Airbus aircraft the company has added to its fleet.
While the airline said the losses incurred during the strike were not the only factor contributing to this latest decision it did speed up the process.
Here's a brief history of the airline which was on Wednesday ordered by President Cyril Ramaphosa to enter into voluntary business rescue.
SAA will face tough questions from members of Parliament’s standing committee on public accounts during their oversight visit to the embattled airline’s headquarters on Thursday.
The National Assembly held a debate of national importance to discuss the recent week-long strike at the struggling airline.
The national carrier said the probe was launched after it received information that some individuals, including senior executives, were involved in acts of criminality.
SAA has debt of about R12.7 billion, consisting of R9.2 billion of legacy debt and a R3.5 billion working capital facility provided by banks.
In the meantime, interim chief financial officer Deon Fredericks said the airline also approached three additional lenders, which include international funders for short-term help.
SAA failed to make a profit since 2011 and has been operating at a loss.
In order to implement its three-year turnaround plan, SAA says it needs a total bailout of R21.7 billion from government.
Solidarity believes government-sourced bailouts will not help SAA in the long term and will simply perpetuate mismanagement.
Parliamentary rules allow for meetings to be held in secret when a matter could be prejudicial to a particular person, is protected under parliamentary privilege.
SAA has not generated a profit since 2011 and has already received state guarantees totalling nearly R20 billion.
