Carol Paton Writer at Large

SAA needed to raise R21.7bn over the next three years to turn the company around and make it profitable, CEO Vuyani Jarana said in an interview on Monday. The funding requirement arises from SAA’s turnaround plan, which was to be presented to Parliament’s finance committee on Wednesday. However, after a dispute in the committee in which the ANC tried to close the meeting to the media and public, the presentation of the plan was deferred. Jarana said the R21.7bn would be comprised partly of a capital injection from the Treasury and partly of debt raised from commercial lenders and guaranteed by the government. The size of the capital injection would depend on the government’s assessment of how much debt SAA is able to carry and was under consideration by an oversight committee chaired by Deputy Finance Minister Mondli Gungubele. The Treasury said on Tuesday it supported SAA’s turnaround strategy. "Funding of the turnaround strategy will require an acceptable mixture of debt and equit...

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