BudgetSpeech2020 | “Government has set aside R16.4bn for SAA over the medium term to repay the airline's guaranteed debt and to cover debt-service costs.”
Mboweni, who was presenting his 2020/2021 budget in parliament on Wednesday, said government would, in the next three years, allocate R16.4bn to SAA to help it meet its financial obligations, including debt service costs.
SAA has made net losses to the tune of more than R32bn since 2008 and it was recently placed under business rescue. Turning to SA Express, the regional carrier which has accumulated losses of R1.2bn in the last decade, Mboweni said the government would have to decide if it still wanted to continue owning it.
Mboweni told MPs that power utility Eskom would be allocated another R43.6bn to help service its debts.In the Budget Review document, Mboweni said Eskom's financial woes had also been compounded by municipalities not paying it for electricity supplied.“Government is working with municipalities to strengthen governance and financial management,” he said.
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