Creecy warns of consequences should SOEs go under business rescue - SABC News

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Creecy Notizia

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'The consequences for the individuals who work there are extremely dire.'

Transport Minister Barbara Creecy has warned that both Transnet and the Passenger Rail Agency of South Africa must be managed carefully to avoid being placed under business rescue. The Minister says this is because the business rescue process is merciless and has dire consequences for workers.

“Business rescue practitioners were merciless, and I suppose that what we all want is to avoid is a state-owned entity ever having to go into business rescue again because the consequences for the future of that entity are significant, the consequences for the individuals who work there are extremely dire,” says Creecy.

“We are engaging with banks on not to get a loan at this point but a loan facility as a kind of a buffer because while it is debt free as you said in your opening, the cash reserves are low and makes us quite vulnerable should there be any shock given the funds are not available,” says SAA Board chairperson Derek Hanekom.

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