SAA, Post Office and other ailing SOEs to receive billions in cash-bailouts

“(at some point) Swiss Air was not functioning very well and the Swiss decided to close it down and invite those who know how to run an airline to start a new airline called Swiss International. So these things are doable. So in the reconfiguration of SOEs‚ we need to be open minded and be modern enough because the world has changed‚ it has not remained static.”

Mboweni has also given the SA Post office R2.9-billion to service its debts after it became the government’s principal agency in the distribution of social grants.

The bailouts of the SOEs are among some of the spending adjustments the national treasury has introduced to the budget that was tabled by former finance minister Nhlanhla Nene in February.

“State-owned companies also receive additional allocations. SAA will receive R5-billion through a special appropriation bill to settle debt redeeming between now and March 2019.

“This will help top present a call on the airline’s outstanding debt of R16.4-billion‚ which is guaranteed by government. In addition‚ R1.2-billion is allocated to SA Express Airways. The SA Post Office receives R2.9-billion to reduce debt levels.”

Mboweni said new boards of directors at SOEs would be mandated to implement higher standards of corporate governance and efficient use of public money.

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