Government commits to give SAA R10.5bn but where will this money come from?
A creditors meeting got underway at the South African Airways on Friday and various media reports are suggesting that the government has committed to giving the struggling airline R10.5 billion in funding.
The reports are also saying that the state has told the administrators that there is a clear cabinet commitment to provide the airline with the money.
The government, however, missed the deadline to come up with the money and unions were furious with the National Union Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) sent a notification citing that they would legally challenge the liquidation of the airline.
Mandy Wiener on The Midday Report chats to Daily Maverick journalist Ray Mahlaka and Sacca president Zazi Nsibanyoni-Mugambi to weigh in on the matter.
The government plans to provide SAA with funding but has not paid out the money yet. What we know is that the business rescue practitioners received a letter from the Public Enterprise Department informing them that Cabinet has made a commitment to provide the airline with the money.Ray Mahlaka, Journalist - Daily Maverick
The government has, however, not provided timelines or how it will raise the money, he adds.
If the money doesn't come by next week, business rescue practitioners have two options. One is SAA's assets will be sold and the second is the worst-case scenario of liquidation, he says.
Liquidation means SAA operations will be closed permanently.Ray Mahlaka, Journalist - Daily Maverick
Nsibanyoni-Mugambi says government cannot simply liquidate the airline as a lot of people are involved.
We have had faith in government finding the money, but now we have run out of faith.Zazi Nsibanyoni-Mugambi, President - Sacca
Listen below to Daily Maverick journalist Ray Mahlaka interview:
Listen below to Nsibanyoni-Mugambi interview:
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