Question NW2578 to the Minister of Finance
10 November 2020 - NW2578
Hill-Lewis, Mr GG to ask the Minister of Finance
On what basis did he decide to relent on the question of wasting more taxpayer money on SA Airways instead of refusing to provide yet another bailout to the airline?
Reply:
SAA’s Board of Directors placed the airline into voluntary business rescue on 6 December 2019 as a result of ongoing liquidity constraints and the airline’s inability to meet its financial obligations as and when they became due.
Upon being placed into business rescue, the Business Rescue Practitioners subsequently assumed responsibility for the management of the airline and finalised a business rescue plan to restructure SAA. Additional funding is required for the successful implementation of the plan as without funding the airline will be placed under liquidation.
Subsequently, Cabinet resolved to support the restructuring of SAA in order to avert the liquidation of the airline and the additional R10.5 billion allocated to SAA will therefore be utilised for the implementation of the business rescue plan.