SAA still a financial burden, Treasury warns

[BusinessTech]

SAA still a financial burden, Treasury warns

South Africa’s decision to sell a majority stake in the country’s loss-making national airline represents an ongoing financial risk to the state as the terms were skewed heavily toward the buyer, the National Treasury said.

 

[Pegging]

That’s partly because Takatso – made up of a local jet-leasing company and private-equity firm – has the right to assess whether any ongoing liabilities in SAA be settled by the government, the Treasury said in the document seen by Bloomberg.

The terms “may result in the state providing funds in excess of its shareholding,” the Treasury said.

The deal of the century.
No risk or downside to Takatso, anything goes pear shaped and the tax payer foots the bill.

How exactly has selling the stake helped the tax payer?

The National Treasury said it was not consulted on the sale of the stake, which it said cost R51 ($3.16), and remains in the dark about a number of other agreements such as Takatso’s proposed issue of preference shares to the DPE. It’s also concerned that government guarantees on SAA’s debt remain in place, according to the document.

 

[grok]

I see Ramaphosa & parliament is still lookin the other way when it comes to taxpayer money being stolen..