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SA National Treasury gives SA Express a R300 million bailout

The National Treasury has just announced that it has committed R300m to drag the bankrupt SA Express airline of its financial difficulties.

The company’s Chief Executive Officer, Siza Mzimela, disclosed the information to the media.

The airline company needs the R300m guarantee to keep its wings up and does not have the ability to obtain a loan from commercial banks without shareholders guarantees.

Rumours are circulating that the ANC’s Finance Minister, Tito Mboweni, has refused a request for assistance, saying the airline company, and perhaps the SA Airways, should be sold instead.

The R300m is in addition to the R1.2bn SA Express received in its February budget.

The amount is not, however, because the R1.2 billion is only for debt for which the Treasury has given guarantees.

How many other debts the company has is unknown.

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SA National Treasury gives SA Express a R300 million bailout

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The National Treasury has just announced that it has committed R300m to drag the bankrupt SA Express airline of its financial difficulties.

The company’s Chief Executive Officer, Siza Mzimela, disclosed the information to the media.

The airline company needs the R300m guarantee to keep its wings up and does not have the ability to obtain a loan from commercial banks without shareholders guarantees.

Rumours are circulating that the ANC’s Finance Minister, Tito Mboweni, has refused a request for assistance, saying the airline company, and perhaps the SA Airways, should be sold instead.

The R300m is in addition to the R1.2bn SA Express received in its February budget.

The amount is not, however, because the R1.2 billion is only for debt for which the Treasury has given guarantees.

How many other debts the company has is unknown.

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#ParasiticParastatal – SA Express is just another bottomless pit swallowing taxpayers’ money

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It is disturbing to realise that recently another enormous lifeline was quietly given to SA Express while all the attention was on Eskom, the SAA and the SABC. According to the Free Market Foundation, SA Express received a lifeline of R1,24 billion from the government in November last year and was now given government guaranteed financing amounting to R300 million.

It seems that the Free Market Foundation forced SA Express by means of the Promotion of Access to Information Act to disclose its financial statements and managerial account data.

SA Express has become a large hole draining tax money from the fiscus dam and if it continues in this way, it will drain everything until there is nothing left. The ANC will have to realise at some point that the country does not have an inexhaustible source of money and that public enterprises cannot be saved from financial ruin indefinitely.

Like with e-toll, taxpayers will get to a point where they will n
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