R21 billion SAA loan may be too good to be true
The Democratic Alliance will write to the Finance Minister, Tito Mboweni, to urge him to put pressure on his cabinet colleagues to carefully consider the proposed R21 billion private loan from a consortium of local and foreign investors to SAA.
Reports today indicate that the loan is conditional on the consortium being given a 51% equity share in the national carrier.
The reported offer of the R21 billion loan looks attractive on the surface. The condition of the consortium taking a 51% equity share is particularly attractive as it would ensure that the ANC government loses all influence over SAA which would be free to conduct business without political interference that has dogged the airline in the past.
However, the offer may not be as attractive as it first appears. The following conditions must apply if the offer from the consortium of local and foreign investors is to be considered;
The proposed loans of R21 billion to SAA from the consortium must;