Treasury commits R300 million to save bankrupt SA Express

Die Vryburger

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Treasury commits R300 million to save bankrupt SA Express. Photo: Die Vryburger
Treasury commits R300 million to save bankrupt SA Express. Photo: Die Vryburger

The National Treasury has just announced that it has committed R300 million to drag the bankrupt SA Express out of the mud. The company’s Chief Executive Officer, Siza Mzimela, disclosed the information to the media.

The company needs the R300 million guarantee to keep its wings up and does not have the ability to obtain a loan from commercial banks without shareholders guarantees.

Rumors are circulating that the ANC’s Finance Minister, Tito Mboweni, had refused a request for assistance, saying the company, and perhaps the SA Airways, should be sold instead.

The R300 million is in addition to the R1.2 billion SA Express received in its February budget.

The amount of R1.2 billion is only for debt for which the Treasury has given guarantees. How many other debts the company has is not known.

Read the original article in Afrikaans on Die Vryburger

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