SAA and Post Office in line for funds from Treasury
Finance Minister Pravin Gordhan has promised a capital injection to South African Airways (SAA) and the Post Office, but is yet to say how much and where the money will come from. Speaking at a media briefing before delivering his budget speech on Wednesday, Gordhan said SAA had strong prospects for a turnaround if the new board did the right thing and appointed a new CE and chief financial officer. "We will make the equity injection SAA needs, but I can’t say yet where the equity injection will come from," he said. Treasury director-general Lungisa Fuzile said that Treasury was "resolute" that the capital injection would be financed in "a deficit neutral way". This would mean that government would either have to dispose of another asset to raise the funds or acquire an equity partner. "Both SAA and the Post Office need new capital. We recapitalised the Post Office with R650m last year, but more might be needed. SAA definitely needs a capital injection which could be substantial, su...
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