Some South African Airways creditors are confused about the decision by the airline’s business rescue practitioners to ask Finance Minister Tito Mboweni for more money from the national Budget.
The creditors were surprised to learn in the 2021 Budget Review that rescue practitioners Siviwe Dongwana and Les Matuson have asked Mboweni for an extra R3.5-billion to fund the restructuring of the struggling state-owned airline.
The amount is over and above the R16.4-billion that Mboweni allocated to SAA in 2020 to fully fund its business rescue process, which is more than a year old and still going on.
The cost of this process has now risen to R19.3-billion, Treasury said in the Budget Review.
MONEYWEB
Budget Review reveals additional R4.3bn allocation to SAA in 2020/21 and R1.8bn in 2022/23. 14:12
No further allocation of funding for SAA in this budget. Image: Guillem Sartorio, Bloomberg
A demand of R267 million for financially troubled national airline South Africa Airwaysâ (SAA) government guaranteed letters of credit was made and settled in 2020/21.
This was disclosed in the Budget Review, which did revealed a further R4.3 billion allocation to SAA in 2020/21 and R1.8bn in 2022/23 to settle governmentâguaranteed debt and interest.
The review said SAA, which was placed in voluntary business rescue in 2019, is expected to exit business rescue and South African Express Airways is expected to be fully liquidated.
defenceWeb
Written by defenceWeb -
Casspirs at Denel.
Denel is on the receiving end of yet another gloomy forecast at the same time as its shareholder representative, Public Enterprises Minister Pravin Gordhan, maintains âdecisive stepsâ are being taken to recover assets, money and intellectual property stolen from State-owned enterprises (SOEs) in South Africa.
The gloomy outlook comes from Victoria Bosomworth, associate aerospace and defence analyst at GlobalData. The London-based data and analytics company says its mission is to help clients decode the future to be more successful and innovative across a range of industries, including defence.
âDenelâs financial woes are not only due to reported financial mismanagement, allegations of which are under investigation at the âState Captureâ Commission of Inquiry, but should also be viewed in the wider context of South Africaâs deepening recession â resulting in the countryâs downgrade
THE Standing Committee on Public Accounts (Scopa) on Tuesday grudgingly granted a postponement to Eskom to make a presentation on its 2019-20 annual report next week