PIC suggested as equity partner for bleeding SAA
DA’s Maynier horrified at idea that pensioners’ money might be used to bail out sick airline
The Treasury has suggested that the Public Investment Corporation (PIC) could become the public equity partner in loss-making South African Airways. This was one of several options being considered, acting Treasury director-general Dondo Mogajane told the finance committee on Wednesday. His statement follows that of Finance Minister Malusi Gigaba in the National Assembly last week that an equity partner for the state airline need not necessarily be from the private sector. Gigaba emphasised that the government still had to decide whether to introduce a minority equity partner. The state’s airline assets include SAA, South African Express, Mango and a 2.5% share in SA Airlink. The possibility that the PIC, which invests funds on behalf of the Government Employees Pension Fund, could be the public equity partner under consideration drew opposition from DA MPs, who protested that pensioners’ money would be sunk into a loss-making entity. "If that is what they are saying, I find it fran...
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