Gigaba gets tough on SAA and SABC
The Finance Minister says SAA might be close to a September bailout
Finance Minister Malusi Gigaba told reporters in Parliament on Tuesday that more clarity would be provided on whether South African Airways (SAA) would be closer to a bailout in September, but insisted that he was taking a no-nonsense stance on bailing state-owned entities out. SAA’s financial state is so dire that a bailout is seen as the only possible way out of its financial quagmire other than a fundamental governance restructure or privatisation. Gigaba said because the national carrier’s credit line was allowed a roll-over which stretched into September, the affairs of the carrier would give a clearer indication of its fate in that month. "We expect [clarity] to be [given] by September, given that the current credit line has been rolled over until the end of September. So we need to make a decision by then which would enable us to inform the lenders of the financial arrangements and capital structure that is going to be finalised this year."
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