SAA gets another bailout
Funding provided for struggling state-owned enterprises fall far short of assistance requested
South African Airways (SAA) will get R5bn, SA Express R1.2bn and the South African Post Office R2.9bn in new funding from the government, according to the medium-term budget policy statement (MTBPS), tabled in parliament on Wednesday. But while the Treasury made new allocations to state-owned enterprises (SOEs), finance minister Tito Mboweni had firm words for their dependence on government hand-outs, saying that there needs to be “a reconfiguration” of SOEs. “This means we should be open-minded about the involvement of equity partners and open to the idea of closing some business activities,” Mboweni said in a briefing to journalists before delivering the statement. He spoke of the need for private-sector partnerships that could help the public-sector provide services more efficiently. State-owned companies, many of which have been poorly run and looted by corrupt managers, have been a large drain on public finances with much of their debt — R670bn in total — guaranteed by governme...
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