Provisional liquidation may be imminent for SAA
29 June 2020
Six months after South African Airways (SAA) was placed under business rescue the process has not been completed and if the plan is rejected as appears imminent – SAA will be placed in provisional liquidation.
The plan, supported by the Department of Public Enterprises (DPE) requires National Treasury to confirm that it will provide funding for the new SAA. However, the spoke in the wheel of DPE and the Minister’s plans are the absence of any money set aside in Finance Minister, Tito Mboweni’s supplementary budget.
Add to this a breakdown of Minister Parvin Gordhan’s much touted Leadership Compact, involving labour and the DPE, and the road to liquidation, delayed in the vain hope that a new airline would emerge – with additional support from the fiscus after decades of bailouts – now appears to be firmly on the cards.
The Democratic Alliance’s (DA) call for the liquidation of the bankrupt entity which predates the many additional millions spent on Business Rescue Practitioners (BRPs), consultants and subsequent bailouts appears now to be the only responsibly practicable way forward.