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Govt questions effectiveness of SAA’s BRPs


It said that taking into account the broader national interests, the process undertaken by the administrators must now be completed with the desired outcome, especially if government was providing the resources they needed.

JOHANNESBURG – Government said it was concerned that South African Airways (SAA)’s business rescue practitioners (BRP) have not adequately accomplished their task to rescue the broke airline, despite the resources available to them.

Government said that as the sole shareholder of SAA, it supported the business rescue plan where it resulted in a viable, sustainable and competitive airline.

However, the administrators said that government would have to find more than R10 billion for their rescue plan to work.

Government has made it clear that it supports the business rescue plan for SAA as long as it results in a viable airline that provides integrated domestic, regional and international flights.

The state said that the business rescue practitioners have had a substantial period of time and additional financial resources at their disposal.

It said that taking into account the broader national interests, the process undertaken by the administrators must now be completed with the desired outcome, especially if government was providing the resources they needed.

Government said it wanted to engage constructively to create a sustainable airline in a constrained fiscal environment, taking into account the impact that COVID-19 has had on the situation.

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