“There is a number that we’ve agreed on with Citibank as to what amount we will advance and how we will be paying the difference. We also have to address working capital and we know it’s not a secret,” he said.
While Treasury has dismissed reports claiming that R100bn of the funds in the Public Investment Corporation (PIC) will be used to bail out state-owned enterprises (SOEs) like SAA, uncertainty remains over how the airline’s funding requirements, which are required in a mere three days, are going to be met.
At a media briefing held on Tuesday, September 26, Dondo said issues with regard to how much SAA and other SOEs needed for funding would be revealed in the Finance Minister Malusi Gigaba’s Medium Term Budget Policy Speech (MTBPS), due to take place on October 25. But DA Shadow Deputy Minister of Finance, Alf Lees, said that was not good enough.
“This uncertainty over how the SAA funding crisis is going to be dealt with cannot remain until the MTBPS process is completed and the people of South Africa cannot afford to be left in the dark as to the details of the full recapitalisation plan for SAA that Treasury says will amount to R10bn in the current 2017/18 financial year,” Alf said in a statement.
There was also no time left for any special appropriation bill to be passed by parliament before September 30, as announced earlier this month, Alf added.
“This uncertainty will have a negative impact on the South African sovereign ratings and must be clarified long before the MTBPS,” said Alf.
Alf, together with Democratic Alliance leader Mmusi Maimane, will on Thursday, September 28 address the media on the crisis at SAA.
The Riebeek Valley is a little piece of paradise, nestled on the slopes of the majestic and beautiful Kasteelberg Mountain. The rural atmosphere of this quaint valley, coupled with the beauty of the area, is the perfect getaway from city life, with the quirky & friendly locals adding an interesting flavour.
Various people post to this blog page.