A new R6.5-billion guarantee has been given to South African Airways (SAA)‚ resolving questions raised by auditors whether it was a going concern and enabling it to publish its long-delayed financial results this month.
Finance Minister Nhlanhla Nene cleared up some of the questions that had lingered about SAA’s financial status in an interview on the sidelines of the World Economic Forum (WEF) in Davos.
The Treasury‚ which has taken over from the Department of Public Enterprises as SAA’s shareholder ministry after an unexpected cabinet decision in December‚ said the R6.5-billion guarantee facility‚ which adds to the R5-billion guarantee already in place‚ was subject to certain performance conditions by SAA and was extended in December.
Acting SAA CEO Nico Bezuidenhout declined to comment on the additional guarantee.
Nene said a long-term strategy for SAA was being implemented‚ building on what was put in place when it was under the Department of Public Enterprises.
Now that it had a new department to report to‚ the Treasury would clarify its intentions for SAA at the annual general meeting later this month.
At the same time‚ however‚ he raised new questions about Eskom. He accused the struggling power supplier of being “irresponsible” for saying it was running short of cash‚ although it had not formally asked Treasury for any more assistance than was announced in the medium-term budget in October. — BDlive
SAA fly high with R6.5bn
Finance Minister Nhlanhla Nene cleared up some of the questions that had lingered about SAA’s financial status in an interview on the sidelines of the World Economic Forum (WEF) in Davos.
The Treasury‚ which has taken over from the Department of Public Enterprises as SAA’s shareholder ministry after an unexpected cabinet decision in December‚ said the R6.5-billion guarantee facility‚ which adds to the R5-billion guarantee already in place‚ was subject to certain performance conditions by SAA and was extended in December.
Acting SAA CEO Nico Bezuidenhout declined to comment on the additional guarantee.
Nene said a long-term strategy for SAA was being implemented‚ building on what was put in place when it was under the Department of Public Enterprises.
Now that it had a new department to report to‚ the Treasury would clarify its intentions for SAA at the annual general meeting later this month.
At the same time‚ however‚ he raised new questions about Eskom. He accused the struggling power supplier of being “irresponsible” for saying it was running short of cash‚ although it had not formally asked Treasury for any more assistance than was announced in the medium-term budget in October. — BDlive
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