Streaming issues? Report here
702 logo Gradients 702 logo Gradients
Best of 702
00:00 - 06:00
volume_up
volume_mute

Up Next: Weekend Breakfast with Refiloe Mpakanyane
See full line-up
Best of 702
00:00 - 06:00
Home
arrow_forward
Business
fiber_manual_record
Politics

DA welcomes Mboweni's pledge not to use 'emergency' powers to bail out SAA

21 July 2020 6:48 PM
Tags:
Democratic Alliance
SAA
Tito Mboweni
SAA bailout
The Money Show
Bruce Whitfield
SAA business rescue
Geordin Hill-Lewis
BRP

The Minister says he will not use money from National Revenue Fund for a bailout, but where will the BRP money come from?

Tax payers won't be footing the bill to implement the measures outlined in the business rescue plan (BRP) for South African Airways (SAA), for now at least.

Finance Minister Tito Mboweni says he has not authorised the use of money from the National Revenue Fund to carry out the rescue of the floundering national airline.

So, where will the money come from?

RELATED: SAA business rescue plan approved, new airline to launch at cost of billions

Mboweni's statement is contained in an affidavit filed in response to an urgent court application the Democratic Alliance (DA) had planned to bring on Tuesday to prevent the bailout from happening "secretly, behind the scenes".

The minister mentions a number of options to "mobilise" funding, as DA Shadow Minister of Finance Geordin Hill-Lewis explains.

Our immediate objective of preventing a secret bailout was achieved. However, to say the public won't be paying, I'm afraid that doesn't mean the public won't be paying. There are still a number of bailout mechanisms or avenues open to the minister.

Geordin Hill-Lewis, DA Shadow Minister of Finance

In this respect he says, the DA will remain vigilant.

The minister could bring a new bill to Parliament... like they did last year for Eskom... They could wait until the October Budget, though I don't think SAA can wait that long and then what I call a bailout by stealth - they could get some banks or financial institutions like the IDC or even maybe the PIC... to loan SAA money and then give them a state guarantee for those loans.

Geordin Hill-Lewis, DA Shadow Minister of Finance

We know that SAA is extremely unlikely to ever repay those loans and so the lender will call on the guarantee at some point in the near future and so that then only delays the bailout to a later date, using the banks as a conduit.

Geordin Hill-Lewis, DA Shadow Minister of Finance

Listen to Bruce Whitfield's interview with Hill-Lewis below:


21 July 2020 6:48 PM
Tags:
Democratic Alliance
SAA
Tito Mboweni
SAA bailout
The Money Show
Bruce Whitfield
SAA business rescue
Geordin Hill-Lewis
BRP

More from Business

stress-black-man-papers-laptop-work-tax-fees-money-finance-woes-businessjpg123rf

Feel you've missed the money boat? Don't fall into the FOMO investment trap!

13 August 2020 8:43 PM

Bruce Whitfield and personal finance expert Warren Ingram get to grips with why perhaps you shouldn't, if you didn't...

Share this:
Read More arrow_forward

landlord-gopng

Keen to buy a Cape Town landmark? Virtual ownership is yours with a new game

13 August 2020 7:57 PM

If you can't afford to buy a property, no matter. 'Landlord GO' allows you to become a tycoon in the Mother City, or elsewhere.

Share this:
Read More arrow_forward

Lorna Scott

Booze ban's effect on women in the industry needs more attention - Gin pioneer

13 August 2020 7:10 PM

Inverroche Distillery spearheaded a 'gin revolution' in SA. Lorna Scott details the wide-reaching effects of the alcohol ban.

Share this:
Read More arrow_forward

fuel-tank-petrol-car-motorist-driving-driver-refuelling-123rf

'Govt can't simply be a spectator if fuel retailers to survive drop in sales'

13 August 2020 6:50 PM

Namibia's government assisted Covid-hit retailers, but SA doesn't understand how the industry works says Reggie Sibiya (FRA CEO).

Share this:
Read More arrow_forward

waiter jpg

'Some restaurants are holding on to waiters' tips to claw back their losses'

12 August 2020 7:53 PM

Yes, restaurants are struggling, but that doesn't make it ok to shortchange staff says Wendy Knowler on The Money Show.

Share this:
Read More arrow_forward

Sars online tax return revenue service 123rfbusiness 123rfpersonalfinance

Have you been auto-assessed by Sars? Here's what you need to know

12 August 2020 7:34 PM

Tax expert Thamsanqa Msiza (Tax Consulting South Africa) tells The Money Show what taxpayers need to check and be aware of.

Share this:
Read More arrow_forward

Dandelion flower

It has not been a good year for rubber

12 August 2020 7:15 PM

The wheels may be coming off for the substance gets us around the world

Share this:
Read More arrow_forward

Cyril Ramaphosa

Is Ramaphosa ready to announce Level 2? What an economist would like him to say

12 August 2020 6:51 PM

The Money Show's Bruce Whitfield interviews Kevin Lings, chief economist at Stanlib Asset Management.

Share this:
Read More arrow_forward

Out of business 123rf 123rfbusiness 123rflifestyle

R200b Covid-19 loan scheme's paid out only R13b. Can a makeover get it to work?

11 August 2020 8:48 PM

Since it launched in May, the scheme's helped only 6.6% of businesses it targets. Will recent changes lead to improvement?

Share this:
Read More arrow_forward

netflorist-haroldpng

Why NetFlorist should be congratulated for bringing back whiny Harold

11 August 2020 8:14 PM

Branding expert Andy Rice explains why NetFlorist's radio campaign is his advertising hero of the week.

Share this:
Read More arrow_forward

More from Politics

Former Eskom CEO Brian Molefe

That he found money in my bag doesn't mean I got it from Guptas - Brian Molefe

14 August 2020 1:31 PM

The former Transnet CEO has denied the allegations and says he looks forward to appearing at the commission to give his side.

Share this:
Read More arrow_forward

Mine mineworker mining gold platinum coal 123rfbusiness 123rf

'Widows of those killed days before Marikana massacre also waiting for justice'

14 August 2020 7:40 AM

EWN assignments editor Gia Nicolaides says days before the infamous massacre, 10 people were killed.

Share this:
Read More arrow_forward

fuel-tank-petrol-car-motorist-driving-driver-refuelling-123rf

'Govt can't simply be a spectator if fuel retailers to survive drop in sales'

13 August 2020 6:50 PM

Namibia's government assisted Covid-hit retailers, but SA doesn't understand how the industry works says Reggie Sibiya (FRA CEO).

Share this:
Read More arrow_forward

d1hsq8kwwaaxresjpg

'ANC executives, please, you have messed up. Get out,' says Bantu Holomisa

13 August 2020 6:08 PM

United Democratic Movement leader Bantu Holomisa has proposed that there be an interim government.

Share this:
Read More arrow_forward

Cyril Ramaphosa

Speculation rife that President Cyril Ramaphosa will address the nation

13 August 2020 4:11 PM

The president is expected to address the nation on developments in SA's risk-adjusted strategy to manage the spread of COVID-19

Share this:
Read More arrow_forward

Mine mineworker mining gold platinum coal 123rfbusiness 123rf

Marikana massacre: 'Still no accountability for mineworkers killed 8 years ago'

13 August 2020 1:22 PM

EWN reporter Theto Mahlakoana gives an update of a commemorative webinar dedicated to miners who died in Marikana.

Share this:
Read More arrow_forward

Cyril Ramaphosa

Is Ramaphosa ready to announce Level 2? What an economist would like him to say

12 August 2020 6:51 PM

The Money Show's Bruce Whitfield interviews Kevin Lings, chief economist at Stanlib Asset Management.

Share this:
Read More arrow_forward

Public Protector Busisiwe Mkhwebane. Picture: Abigail Javier/EWN

PP takes Parliament to court over bid to remove her, calls bid unconstitutional

12 August 2020 1:09 PM

News24 parliamentary reporter Jan Gerber reflects on the court case between Busisiwe Mkhwebane and the National Assembly.

Share this:
Read More arrow_forward

Out of business 123rf 123rfbusiness 123rflifestyle

R200b Covid-19 loan scheme's paid out only R13b. Can a makeover get it to work?

11 August 2020 8:48 PM

Since it launched in May, the scheme's helped only 6.6% of businesses it targets. Will recent changes lead to improvement?

Share this:
Read More arrow_forward

123rf A pile of two hundred rand notes, South African currency money

Eskom pensioners receive Covid 19-relief bonuses totalling R104m

11 August 2020 7:25 PM

The Money Show's Bruce Whitfield interviews Eskom's Linda Mateza about the once-off payment to its pensioners.

Share this:
Read More arrow_forward