Carol Paton Writer at Large
Picture: SAA
Picture: SAA
Image:

January salaries at SAA have been paid, despite the company’s tense waiting game for the R2bn of funding it needs to continue operating.

Spokesperson for the business rescue practitioners Louise Brugman said on Friday: “The business rescue practitioners and management have taken various actions to ensure that cash is conserved. As a result we have sufficient funds to pay salaries.”

SAA is on tenterhooks at it waits to hear whether the Treasury has raised the R2bn from the capital markets. Although, the Treasury pledged in December to provide the money from the fiscus, it later transpired that it did not have a legal mechanism to appropriate additional money for SAA, as it was not covered in the adjustment budget in October.

The only other mechanism —  an appropriation under section 16 of the Public Finance Management Act — was exhausted last year when an emergency R17bn was transferred to Eskom.

The government is expected to make an announcement on the funding imminently.

patonc@businesslive.co.za