Government has set aside R16.4 billion to repay guaranteed debt for the struggling airline SAA, the National Treasury said on Wednesday.<\/p>\n
This comes after the SAA Board placed the airline under voluntary business rescue in December last year after the struggling state-owned entity was unable to meet financial obligations.<\/p>\n
\u201cSince 2008\/09, SAA has incurred net losses of over R32 billion. Government has set aside R16.4 billion for SAA [over the next three years] to repay the airline\u2019s guaranteed debt and to cover debt-service costs.<\/p>\n
\u201cThe costs of this adjustment are still being finalised, and will be financed from existing provisional allocations for state-owned companies,\u201d the National Treasury said.<\/p>\n
Government to assess its appetite for continued ownership of SA Express<\/strong><\/p>\n The National Treasury said SA Express, illiquid and insolvent, is unable to settle either short or long-term obligations as they become due.<\/p>\n Cumulative losses amount to R1.2 billion over the past 10 years.<\/p>\n \u201cThe airline was recently placed under involuntary business rescue, which it intends to appeal.<\/p>\n \u201cGovernment will need to assess its appetite for continued ownership of the carrier, given that it has a limited role in the local aviation market.\u201d<\/p>\n Eskom\u2019s financial support remains unchanged<\/strong><\/p>\n The National Treasury said, meanwhile, that over the past 12 years, government has allocated R162 billion to financially distressed state-owned companies, of which Eskom accounts for 82%.<\/p>\n In its budget review, the National Treasury said the fiscal support for Eskom, as outlined in the 2019 Medium Term Budget Policy Statement (MTBPS), remains unchanged.<\/p>\n \u201cOver the next three years, government will transfer R112 billion to Eskom to enable the utility to meet its short-term financial obligations.<\/p>\n \u201cThe roadmap on Eskom, published by the Minister of Public Enterprises, outlines the reform process.<\/p>\n \u201cEskom has begun the process of separating its three operating activities \u2013 generation, transmission and distribution \u2013 each of which will soon have its own board and management structure.\u201d<\/p>\n The National Treasury said these are the first steps in the necessary restructuring of South Africa\u2019s electricity sector for the 21st century.<\/p>\n
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