Supplementary Budget 2020

Ramaphosa on SAA: Wait for mini budget for more info

Cape Town – Deputy President Cyril Ramaphosa asked members of Parliament to be patient and wait for the Medium-term Budget Policy Statement (MTBPS) to hear how government plans to inject capital into South African Airways (SAA).

He was responding to a question from Democratic Alliance (DA) leader Mmusi Maimane who asked if he in his capacity as Deputy President advised Finance Minister Malusi Gigaba on the latest R3bn bailout to SAA.

At the end of September, Gigaba announced that National Treasury granted SAA a R3bn bailout to ensure the airline meets its debt obligation to Citibank and have working capital going forward. 

Ramaphosa on Thursday said government is poignantly aware of the challenges the airline is facing. “Selling off the airline is your party’s policy platform, not the ANC’s,” he told Maimane who earlier said SAA should be sold off to the highest bidder.

“The Finance Minster will in his MTBPS on Wednesday set out exactly how SAA will be funded and how this will affect South Africa’s fiscus, the conditions attached to the money and how we’ll deal with regulatory matters such as the PFMA (Public Finance Management Act).”

Ramaphosa said he was heartened by the appointment of the new SAA board and that South Africans can look forward to a clear, strategic approach.

Gigaba earlier today officially announced that Cabinet has approved the appointment of six new board members for South African Airways (SAA), including a new chairperson to replace Dudu Myeni.

Myeni is replaced by Johannes Bhekumuzi Magwaza as the new chairperson, and Nolitha Fakude is the new deputy chairperson and non-executive director, replacing Tryphosa Ramano.

New board members who will serve as non-executive directors are Geoff Rothschild, Ahmed Bassa – an aviation expert, Tinyiko Mhlari, and Martin Kingston.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

ZAR/USD
16.93
(+0.72)
ZAR/GBP
21.57
(+0.88)
ZAR/EUR
19.76
(+0.98)
ZAR/AUD
11.93
(+1.38)
ZAR/JPY
0.16
(+1.17)
Gold
1867.94
(+0.71)
Silver
23.17
(+5.69)
Platinum
848.00
(+1.91)
Brent Crude
41.98
(+0.17)
Palladium
2221.71
(+0.92)
All Share
54247.81
(+1.84)
Top 40
50127.05
(+2.04)
Financial 15
9588.13
(+0.19)
Industrial 25
74229.70
(+3.26)
Resource 10
53508.98
(+1.08)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1359 votes
It depends on how the funds are used.
73% - 8816 votes
No. We should have gotten the loan elsewhere.
16% - 1947 votes
Vote