Monday, 28 September 2020 21:21

 

Photo Credit:Gallo Images.

National Treasury wants strict conditions attached to any guarantees it provides for loans to the country’s embattled state airline,SAA,according to people familiar with the matter.

SAA halted operations and sought bankruptcy protection in December. The carrier’s administrators say R10.5 billion is needed for the airline to resume operations.

Finance Minister Tito Mboweni is prepared to provide guarantees on R4 billion to R5 billion of that amount, subject to stringent criteria.

Mboweni is expected to table his adjusted budget for the 2020 financial year in October when he is expected to announce how the funds would be moved around.

It’s unclear where the funding would be sourced from and there’s no agreement yet on any bailout. President Cyril Ramaphosa has backed the airline’s rescue,according to the sources.

SAA, which was crippled due to financial mismanagement, has been under a business rescue process since December 2019.

Meanwhile South African Airways has been hit by yet another strike.

This time technical staff have downed tools at the national carrier.Striking workers are demanding their pay cheques saying management has been paying themselves full salaries, whilst ordinary employees received half.

SAAT also withdrew its services to Mango and SAA over the weekend. It was earlier reported the SAA Technical workers marched to management offices on Monday.