StateCaptureInquiry For each airport, SAX was to be paid R14.6m in the first year, R4.8m in the second year and R4.5m for the following three years. All monies were paid upfront.
However, the North West government forked out millions to SAX for a series of subsidies and concessions to get the routes operational before any work was actually done.
Analysing the airline's contract with the government department, Phiri said SAX was paid a concession subsidy that related to costs which ordinarily would be incurred by SAX in extending its services to the two airports. Those costs would then be subsidised accordingly.SAX was also paid a route-marketing subsidy which related to the cost incurred by the airline in developing the route. It also related to the costs of marketing the flights before their launch.
For each airport, SAX was to be paid R14.6m in the first year, R4.8m in the second year and R4.5m for the following three years. All monies were paid upfront.
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