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'Government has not committed to fund SAA rescue plan', Tito Mboweni says

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The South African government has not committed to fund a restructuring plan for struggling South African Airways (SAA), Finance Minister Tito Mboweni said in court papers on Tuesday.

Mboweni and Public Enterprises Minister Pravin Gordhan sent a letter last week to SAA's administrators committing to"mobilising funding" for the plan.The South African government has not committed to fund a restructuring plan for struggling South African Airways , Finance Minister Tito Mboweni said in court papers on Tuesday.

Mboweni said in an affidavit filed in the High Court that funding options the government might explore included approaching institutions for investment of pension funds, private equity or other partners who might want a shareholding in a restructured SAA. Mboweni and Public Enterprises Minister Pravin Gordhan sent a letter last week to SAA's administrators committing to"mobilising funding" for the plan.

One of them is that the government finds money for the plan, which envisages scaling back the airline's fleet and shedding jobs before gradually ramping up operations as Covid-19 disruption eases.

 

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