Government still deciding how to get SAA the R10bn it needs, says Gigaba
South African Airways (SAA) needs at least a R10bn capitalisation to get on the right footing. Speaking at Treasury on Friday, Gigaba said the Cabinet had appointed four ministers (of Public Enterprises, Telecommunications and Postal Services, Finance, and Economic Development) to look at various options to capitalise SAA. "At the present moment, there is a R10bn capitalisation required for SAA but the form of that recapitalisation and the model are not yet finalised," he said, explaining that it had to go through Cabinet first. Gigaba said one of the biggest concerns remained governance of state-owned entities (SOEs), particularly in terms of Eskom and SAA, explaining that they needed to become financially stable and win investors’ confidence. "Any more guarantees and the risk to government would be quite enormous," he said. "I have expressed my displeasure and discomfort about the provision of government guarantees to support operational expenditure. "Government guarantees should ...
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