Private sector is biting on SAA, Gordhan says
Public enterprises minister gives assurances as Mboweni says cash injection was a hard choice.
PARLIAMENT, November 4 (ANA) – Public Enterprises Minister Pravin Gordhan on Wednesday maintained that there was credible interest from the private sector in South African Airways, while his finance counterpart insisted that bankrolling the business rescue of the national carrier was a tough choice.
“I’m unable at this point in time to give further detail,” Gordhan told Parliament’s watchdog Standing Committee on Public Accounts as it received a promised update on SAA’s future plans.
Gordhan said he could not disclose more, so as not to jeopardise the dealings, which are meant to resuscitate the airline mothballed in late September as it ran out of funding for even skeleton operations.
“You will hear about this process in the next weeks,” he said.
Sources close to Gordhan said the prospect of a private partner, rumoured for a few weeks, were “very firm”.
The minister said the appointment of an interim board for SAA and a competent management team was imminent.
His remarks came only a few hours after Finance Minister Tito Mboweni told the National Assembly that “politically and financially” affording SAA a R10.5 billion (US$662 million) allocation for the implementation of the business rescue plan had been a very difficult decision.
Mboweni is widely seen as having been backed into a corner by a Cabinet majority reluctant to shutter the loss-making airline.
Gordhan, however, insisted that the airline presented an economic opportunity that would see precious skills development over time.
He added: “An interim board will be announced and a core management team will be announced to execute the kind of restructuring.”
Cash restructuring, the minister said, was key to the future of the project.
He insisted that business rescue was a far better option than liquidation, which beckoned unless Mboweni availed the funds last week.
– African News Agency (ANA); Editing by Yaron Blecher
