South African Finance Minister Tito Mboweni on Wednesday says that the National Treasury is working hard to secure a US$133 million bailout for the embattled South African Airways “as soon as possible”.
“It is important for the funding of the SAA to happen in a fiscally neutral way,” Mboweni said.
According to the minister, the problem, however, is that securing the funds for the airline needs an enabling legislation to make it happen.
The minister said: “Right now we don’t have an Appropriations Bill that can find an additional $133 million (for the airline). Therefore, this money has to come from other sources that (National Treasury) Director General Dondo Mogajana is working on.
“But we have given our commitment that we will try to support SAA as much as we can and that we will work as much as we can to help.”
The national flag carrier grounded its flights on Monday due to failure to secure the bailout funding from the government, which was expected on Sunday.
NM/GIK/APA