LETTER: R1.5bn paid to SAA may not be lawful
A responsible shareholder would have taken care of employees first and foremost and R1.5bn would have gone a long way in doing just that
08 December 2020 - 17:22
The SAA business rescue practitioners allowed the department of public enterprises to interfere and ultimately undermine a process that should have been independent and clinical. It has become a downright mess.
I understand that the R1.5bn paid to SAA may not be lawful in terms of the parliamentary processes. There are, however, other complications: the conditions of the payment that it must be paid to SAA’s bankrupt subsidiaries faces at least two hurdles. The first is that the department’s condition is unlawful in terms of chapter 6 of the Companies Act (business rescue and compromise with creditors)...
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