Need to get Airbus deal through behind Nene axing - reports

2015-12-11 10:45
Former finance minister Nhlanhla Nene (File, AFP)

Former finance minister Nhlanhla Nene (File, AFP)

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Cape Town – The urgency in restructuring South African Airways’ Airbus deal was likely behind the surprise axing of Nhlanhla Nene as finance minister, reports stated on Friday.

Business Day reported that a larger Cabinet reshuffle had been touted for some time, but the need to conclude the Airbus transaction by December 21 saw President Jacob Zuma quickly shoving Nene out.

Last week, Fin24 reported that Nene had not approved the proposed amendment to SAA's Airbus A320/A330 swap transaction structure.

Nene had instructed the national carrier to implement the transaction structure in line with the approval that had already been granted. That would mean to conclude the agreement to swap the purchase of ten A320s for a lease of five A330s from Airbus.

Business Day reported that with Nene out of the way, SAA is hoping that the Airbus deal will be “revisited” by new Finance Minister David van Rooyen.

Business Report stated an SAA insider as saying that the airline sought Zuma’s help after Nene’s ruling, claiming that they had secured R14bn in funding from the Free State Development Corporation and some other organisations were also keen to fund the Airbus deal.

There has been much speculation over Zuma’s close ties with the chairperson of SAA, Dudu Myeni who is also in charge of the Jacob Zuma Foundation.

Read more on:    saa  |  dudu myeni  |  jacob zuma  |  nhlanhla ­nene  |  david van rooyen  |  economy

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