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Public Enterprises Minister Pravin Gordhan said SAA still had a role to play in the country’s economy and that allocating R10.5 billion to it was a better option than liquidation.
CAPE TOWN – Public Enterprise Minister Pravin Gordhan said South African Airways (SAA) was too important and strategic to allow the economy to fail again.
It is supporting the injection of cash of billions of rand for the airline to help with its business rescue plan.
The minister and business rescue professionals from the national airline briefed the Standing Committee on Public Accounts (Scopa) and Public Companies officials on Wednesday night.
Gordhan said SAA still had a role to play in the country’s economy and allocating R10.5 billion to it was a better option than liquidation.
• Mboweni grants SAA R10.5bn to implement the business rescue plan
He added that several industries would be affected if the airline is not fixed.
“SAA is going through a serious process of change. It remains, at the end of it all, a valuable public asset that needs to take a new shape, a new direction.”
Business rescue practitioner Siviwe Dongwana said the airline still owes passengers R3 billion in bookings that have not been met.
He said the airline was completely out of cash.
“I think the important thing is that we have to remember that at this moment we have an allowance but we have no cash. There are no funds that have flown to the company and if the company, for the sake of argument, would exit. of business rescue at this point with immediate effect, the reality is that the company will be able to fulfill its obligations as they expire today ”.
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