SAA’s business rescue plan, which is binding on stakeholders in terms of the Companies Act, would not be undermined by a bill that will divert R2.7bn of SAA’s R10.5bn allocation by the government to its subsidiaries, the Treasury argued in parliament on Friday.

The question before parliament’s standing committee on appropriations was whether the R2.7bn allocation to subsidiaries was part of SAA’s business plan. If not, then the Special Appropriation Bill before the committee would contravene the Companies Act. The bill will amend the department of public enterprises budget vote to authorise the use of R2.7bn of the R10.5bn for SAA’s subsidiaries...

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