RAMAPHOSA: “We are currently looking at the optimal structure for SAA,
SA Express and Mango and these recommendations will be proposed
to cabinet soon.”
Finance Minister Malusi Gigaba is discussing the option of selling government’s 39.75% stake in Telkom with three Cabinet ministers, his spokesperson Mayihlome Tshwete said on Wednesday.
The Cabinet ministers engaging with Gigaba are Economic Development Minister Ebrahim Patel, Public Enterprises Minister Lynne Brown and Telecommunications Minister Siyabonga Cwele, he said.
Tshwete said the statement by Democratic Alliance lawmaker Alf Lees in Parliament on Wednesday that he possessed a “secret” document revealing that Treasury had decided to sell government’s R14.4bn stake in Telkom, was inaccurate.
“It is a confidential Cabinet memo that seeks to discuss the possibility of selling this stake as an option to recapitalising South African Airways (SAA),” he told Fin24.
“We shouldn’t speak of it as a done deal,” he said. “This is one of the things we are exploring. The alternative is for us to look for funding in other places, without imposing on other parts of government, as we want to make sure it does not have an adverse effect on the fiscus.” See Fin24
The Standing Committee on Public Accounts hearing held Wednesday 23 August 2017 on the irregular, fruitless and wasteful expenditure at South African Airways.
The only option left, with any hope of plugging financial hole, is for the ANC government to put SAA into business rescue to stabilise the airline before taking it to the market to find private equity investors.
~ Alf Lees MP, DA Shadow Deputy Minister of Finance