Treasury and SA Express discuss cash injection for ailing airline
The public enterprises minister is confident SOEs can pull themselves out of their difficulties
Talks are under way with the Treasury for an injection of cash into state-owned airline South African Express for operational purposes, Public Enterprises Minister Pravin Gordhan said on Thursday. The airline is haemorrhaging cash and has warned that it will not be able to pay suppliers if it does not receive funds from the state within the next month. Gordhan has appointed an intervention team to strengthen the capacity of SA Express. He said the intervention team had already uncovered a R5.7m payment by SA Express to Trillian for advisory services and the raising of capital without proper procedures having been followed. No capital had ever been raised. The team had also uncovered a dodgy fuel supply contract — which has now been cancelled — for R67m a month without due process having been followed. Gordhan said these two instances had been uncovered in the last four days and he believed that further such cases would be uncovered. During a media briefing at which he announced the ...
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