SA Express seeks bank loan

SA EXPRESS is seeking
government approval for a
bank loan as the airline is
insolvent and unable to pay
its debt.
The airline’s management
met with the Portfolio
Committee on Public
Enterprises, which
conducted an oversight visit
at SAX earlier this month.
Inati Ntshanga, SAX ceo,
told the Committee that
SAX needed to raise funds
with the bank; however, the
bank needs a shareholder
agreement in order to
secure the loan.
He said an application
had been sent to National
Treasury and Department of
Public Enterprises but that
SAX was still waiting for a
response.
Chairperson of the
Portfolio Committee on
Public Enterprises, Dipuo
Letsatsi-Duba, said she
welcomed the austerity
measures put in place
to address the financial
challenges and to curb
wasteful expenditure at SAX.
Colin Cruywagen,
spokesperson for the
Department of Public
Enterprises, referred all
questions to SA Express.
He said the department
could not comment as the
carrier had yet to hold its
AGM as its financial records
were not finalised.
He repeated what Minister
of Public Enterprises,
Lynne Brown, explained
recently that state-owned
companies must be able to
live off their own balance
sheets.
SAX could not be reached
for comment.