Government close to choosing private partner for revamped national carrier - Gordhan

Hanno Labuschagne

Hanno Labuschagne

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Government close to choosing private partner for revamped national carrier - Gordhan

South Africa has identified three equity partners for the country’s bankrupt state airline and will make a decision on which one to pick in “the next month or so,” according to Public Enterprises Minister Pravin Gordhan.

The interim board of South African Airways is engaging with the candidates before the government makes its recommendation, the minister said in an interview with Bloomberg TV on Friday.

He also expects the national power utility’s R464 billion ($31.6 billion) of debt to become “a thing of the past” in the next three to five years.

[Bloomberg]
 
He also expects the national power utility’s R464 billion ($31.6 billion) of debt to become “a thing of the past” in the next three to five years.
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But no details about how they will make it "disappear". Because their technique for making Covid funds "disappear" won't work here
 
South Africa has identified three equity partners for the country’s bankrupt state airline and will make a decision on which one to pick in “the next month or so,” according to Public Enterprises Minister Pravin Gordhan.

The interim board of South African Airways is engaging with the candidates before the government makes its recommendation, the minister said in an interview with Bloomberg TV on Friday.
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I can only imagine how this is playing out behind the scenes: SA government (aka the cackle of corrupt cANCer cadres) picks companies that it thinks are dumb enough to invest money into the SAA pyramid scheme (because zero companies expressed any interest), and PG is still waiting for them to return his numerous calls/emails/WA messages.
 
I understand that the last few years have seen unprecedented looting, but if memory serves SAA has never been profitable.

Who in their right mind would "invest" in something like that???

Surely at this point it's just cheaper to start your own airline.
 
One really has to question the business acumen or motives of any private investor who is foolish enough to get into bed with the government with anything, nevermind SAA. There is nothing to "invest" in.
 
deweyzeph said:
One really has to question the business acumen or motives of any private investor who is foolish enough to get into bed with the government with anything, nevermind SAA. There is nothing to "invest" in.
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Honestly, the motive is to make money.

Business doesn't care about who gets screwed over in the process.
If there is money to be made they will wheel and deal with the devil and then plead: "There was no proof in a court of law about the abuses happening, that is why we partnered with the SA Government".

We recently learned you can make money from shared you don't actually own, so I'm sure there is ways to make money from a failing entity and milk it for all it is worth and even some more then, as long as you pay off the right people.

I loath what the SA Government has done to the SOE's, but I also loathed the enablers of that - the banks that keeps on giving money. Their 'analysts' must know where the burden of the repayment is coming from and how it will influence generations to come, but they somehow justify that under the umbrella of capitalism.

Investment bankers - and I have a suspicion there are quite a few people on MyBB who has close ties to those types of companies, who just look at providing profits for shareholders.
Those same then comment on here about the wrongs of the SA Government for stifling their greed, whilst conveniently ignoring their own involvement in the 'legal' but not moral pilfering of other peoples work.

Reminds me of that that South Park episode where the money is deposited and soon disappears. "... and it's gone...."
 
By equity partner he means a loan agreement, that treasury stands suretyship, and at exorbitant default terms
 
CommonSense said:
Honestly, the motive is to make money.

Business doesn't care about who gets screwed over in the process.
If there is money to be made they will wheel and deal with the devil and then plead: "There was no proof in a court of law about the abuses happening, that is why we partnered with the SA Government".

We recently learned you can make money from shared you don't actually own, so I'm sure there is ways to make money from a failing entity and milk it for all it is worth and even some more then, as long as you pay off the right people.

I loath what the SA Government has done to the SOE's, but I also loathed the enablers of that - the banks that keeps on giving money. Their 'analysts' must know where the burden of the repayment is coming from and how it will influence generations to come, but they somehow justify that under the umbrella of capitalism.

Investment bankers - and I have a suspicion there are quite a few people on MyBB who has close ties to those types of companies, who just look at providing profits for shareholders.
Those same then comment on here about the wrongs of the SA Government for stifling their greed, whilst conveniently ignoring their own involvement in the 'legal' but not moral pilfering of other peoples work.

Reminds me of that that South Park episode where the money is deposited and soon disappears. "... and it's gone...."
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They shouldn't exist in the first place.
 
Did I die and wake up in heaven? SAA & Eskom's debt fixed in one article?
 
why are they dragging the skeleton of a horse through the mud still?
who would want to buy anything SAA related?

its essentially a ANC slush fund at this point,
 
deweyzeph said:
One really has to question the business acumen or motives of any private investor who is foolish enough to get into bed with the government with anything, nevermind SAA. There is nothing to "invest" in.
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Shorting, when losing is winning. :D
 
C4Cat said:
SAA's last profitable financial year was 2010/11, when it earned R782 million in profit.

South African Airways has lost billions in seven unprofitable years

News websites said South African Airways hadn’t made a profit since 2011.The airline’s last profitable financial year was 2010/11, when it earned R782 milli...
africacheck.org africacheck.org
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I stand corrected. Thanks for the info.

Then it's just the corruption and ineptitude hat caused its fall. What a shame.
 
porchrat said:
I stand corrected. Thanks for the info.

Then it's just the corruption and ineptitude hat caused its fall. What a shame.
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Exactly that. It is possible that it will be profitable again one day, though not in the current covid environment, but it's doubtful whether bringing it back to being a profitable company will have been worth all the taxpayer money spent on keeping it alive thus far. I don't see any benefit to the citizens of SA either way.
 
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C4Cat said:
Exactly that. It is possible that it will be profitable again one, though not in the current covid environment, but it's doubtful whether bringing it back to being a profitable company will have been worth all the taxpayer money spent on keeping it alive thus far. I don't see any benefit to the citizens of SA either way.
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Agreed. I don't appreciate good money that could have gone to some better cause being squandered on SAA. We've got hospitals and clinics unable to secure things as fundamental as gloves, people without a roof over their head, and yet we throw money at an airline. The current government is failing us all.
 
wernervn said:
But no details about how they will make it "disappear". Because their technique for making Covid funds "disappear" won't work here
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I would suspect that PIC does a debt to equity swap + prescriptive investing.
 
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