The mountain of debt at South African Airways (SAA) is one of Finance Minster Malusi Gigabe biggest issues. This week it was revealed that the airline cannot pay back the billions it owns to service providers.
Reports surfaced that SAA will receive a R10 billion cash injection and that the money will come from government selling their shares in Telkom to fund it.
EWN Reporter, Barry Bateman says Finance Minster Malusi Gigaba insists that this option has not been finalised.
Gigaba said that what is fact, is they got a R10 billion capitalisation that they need to sort out. But he went to great pains to try and say that what you heard earlier this week about selling shares in Telkom to try and fund this recapitalisation is one of the many solutions they are looking but nothing has been finalised.— Barry Bateman, EWN Reporter
Gigaba stated this at a media briefing after a Chiefs Executive Initiatives meeting. This meeting included chief executives in the country, who met to play their part in helping the country grow.
One of the executives involved in the meeting was Jabulane Mabuza, the chairman of the Telkom board. According to Bateman, Mabuza says that government needs to be careful of the information that is released to the public.
The concern that was raised by Mabuza is that government need to be mindful of what comes out into the public, where there are shares involved that are sensitive to the market.— Barry Bateman, EWN Reporter
Despite the big problems SAA is facing, Bateman says that Gigaba is confident that they can bring stability to the airline.
Listen to the full interview below: