The Minister of Public Enterprises, Pravin Gordhan, welcomed the R10.5 billion allocated to South African Airways (SAA) in the medium-term budgetary framework – although this lifeline has been sharply criticized from many quarters.
Gordhan also expressed his “shock and disappointment” over the DA and other parties ‘and analysts’ “lack of insight, financial literacy, and understanding of management processes.”
He also accuses the DA of ignoring the suffering of workers at SAA.
The minister says the DA and its partners hide their lack of knowledge about the aviation industry by manipulating facts and coming up with false ideas about SAA.
He says the business rescue plan recommended that R600 million be paid to the company’s creditors over three years; that about R1.7 billion be paid over three years to lease agreements for aircraft; that post-opening creditors are paid directly from the current capital injection to get the shipping company back on track; that lenders are paid following the February budget decision and that retrenchments – amounting to about R2.2 billion – are considered.