SAA Creditors demand their money back

JOHANNESBURG – The embattled South African national carrier South African Airways (SAA) needs to honour another R5 billion debts unless the Minister of Finance Melusi Gigaba steps in.

SAA is expected to settle its debt from the South African lenders at by the end of this month. But in a report Melusi Gigaba presented to the Parliament states that said the local banks may be willing to extend the deadline beyond end of this month.

He went to say they may extend it to the end of March in 2019. This deadline may be extended on a condition that he as the Minister of Finance announces an equity injection into SAA when he plans the medium term budget policy statement (MTBPS) this month on the 25th.

But the DA spokesperson Alf Lees said it is clear that the Minister of Finance has dug himself a hole with SAA. However, the equity injection needs to be approved by the parliament first.

It needs to be approved in terms of the Public Finance Management Act (PFMA) before it can take effect.

This means that the legislator will be given only 6 days to do so.

Lees went on to say that this whole thing is practically and legally possible for the parliament to approve this bill at the end of October.

Be the first to comment

Leave a Reply

Your email address will not be published.