Question NW708 to the Minister of Public Enterprises
29 April 2022 - NW708
Phiri, Ms CM to ask the Minister of Public Enterprises
(1) In light of the fact that the Government has provided funds to Mango’s business rescue and yet the finalisation of the process has not yet been concluded, on what date is it envisaged that the business rescue process will be concluded; (2) whether the rescue plan is intended to find the buyer and/or the investor for the airline; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
1. The business rescue process is at an advanced stage. The Department has transferred the last tranche of R399 million from the total of R819 million that was allocated to the airline for restructuring purposes. The last tranche was transferred on 28 March 2022 on conditions that not only should the business rescue process be completed around the end of April 2022 but that a viable strategic equity partner for Mango is identified that has financial capacity to fund the airline after it exits the business rescue process.
2. The process of identifying a suitable Strategic Equity Partner (SEP) for Mango is part of the conditions for transfer of the last tranche of R399 million as indicated above. The process which was initiated on 2 December 2021 is expected to be finalised in the next few months.