SAA gets R3 billion bailout
Cabinet has approved yet another bailout for the South African Airways (SAA).
The embattled national carrier faced a debt deadline.
Treasury spokesperson Mayihlome Tshwete says the decision follows cabinet's deliberation on the matter.
SAA is expected to pay its R3billion loan owed to Citibank on Saturday.
"Cabinet discussed the matter and resolved that the National Revenue Fund would transfer money to SAA to settle the Citibank debt. That has happened. Default would have meant greater exposure to the guarantees that SAA is holding - to the tune of R17 billion," Tshwete explains. "It was an important decision to be taken."
SA tired of bailing out SAA: Gigaba
The airline has until Saturday to settle its R6.9 billion debt.
It remains unclear where the airline will get the rest of the funds.
He says Treasury will now focus on capital injection, strengthening of the SAA board and the starting date of the new CEO.
Meanwhile, DA leader Mmusi Maimane insists SAA must be sold off.
He maintains the airline is beyond the point of saving.
Maimane says: "Why should poor people be financing rich people to fly? When you think about ordinary South Africans who at this point would have been able to get 93 000 houses. If you look at it from a student's point of view we would have been able to finance 186 000 NSFAS bursaries."