Public Enterprises Minister Pravin Gordhan has expressed his shock and disappointment with opposition parties and some analysts for what he calls a lack of insight, financial literacy and understanding of governance processes.
This comes after criticism was levelled against government following Finance Minister Tito Mboweni announcement during his Mid-term Budget Statement that South African Airways(SAA) would receive a further R10.5 billion this year.
The funds are an addition to the R16.4-billion which the state-owned airline has received in the past three years.
In a statement, Gordhan criticised the Democratic Alliance for ignoring the suffering of SAA employees and the threat of losing their jobs.
He says the R10.5 billion will pave the way for the finalisation of the business rescue process.
“The Department of Public Enterprises points out that R2.2 billion of the funding will cover retrenchment costs. Approximately R1.7 billion will be directed towards aircraft lessors over a three-year period. R2.8 billion will be directed towards an initial working capital injection. A provision for un-flown tickets of R3 billion is also required in the medium term, while R2.2 billion will go toward the payment of creditors, other than lenders.”
In the video below, political parties express mixed reactions to R10.5 billion given to SAA to implement the business rescue plan:
Chief Economist at the Efficient Group, Dawie Roodt says government cannot spend R10.5 billion when many South African are going to bed hungry.
Below is Roodt’s full interview:
In the video below, Mboweni delivers the 2020 Mid-Term Budget:
