South African government has not committed to fund SAA rescue plan, finmin says

PUBLISHED: Tue, 21 Jul 2020 12:20:12 GMT
Share

JOHANNESBURG (Reuters) – The South African government has not committed to fund the requirements of a restructuring plan for struggling South African Airways (SAA), Finance Minister Tito Mboweni said in court papers seen by Reuters on Tuesday.

Mboweni said a letter he and Public Enterprises Minister Pravin Gordhan sent to SAA’s administrators last week instead committed to “mobilising funding” for the plan.

Mboweni added in the court papers that potential options the government might explore to mobilise funds included approaching institutions for investment of pension funds, private equity partners or other strategic partners who might want to acquire a shareholding in a restructured SAA.

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.