Business 13.9.2017 02:39 pm

Treasury to give SAA special appropriation of R10bn by month’s end

The bill is not linked to the proposed sale of government’s 39% stake in Telkom.

National Treasury has agreed to give South African Airways a special appropriation of R10 billion by the end of September, director general Dondo Mogajane told MPs on Wednesday.

“It will be for R10 billion. We have decided, because that will cover everything,” he said, during a briefing on the ailing airline’s latest quarterly results.

The bill is due to be tabled in a special sitting and Mogajane said he hoped that the legislature would agree to the measure, adding that the treasury would be forced to look at a “plan B” if MPs refused to support it.

Mogajane said nine lenders have agreed to roll over debt that would become due at the end of the month, while Citibank has agreed to roll over a portion of R1.761 billion the loss-making airline is due to repay by the 30th.

SAA relies on government guarantees of R20 billion, and needed government help in July to cover its debt. Treasury paid R2.2 billion to Standard Charter earlier this year, with money taken from government’s emergency fund.

– African News Agency (ANA)

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