SAA and SA Express will not receive anymore bailouts according to National Treasury’s planned SOE reforms, published July 3.
A slide in a presentation titled ‘Supplementary Budget 2020: Response to Public Submissions’ says: “No further action required in terms of bailouts except to settle guaranteed debt as entity is insolvent and BRPs have not released turnaround plans.”
Treasury presented to the Standing Committee on Finance and Select Committee on Finance at a joint virtual meeting held Friday (July 3) where Edgar Sishi, deputy dg of National Treasury, said that spending proposed in the supplementary budget presented an unprecedented situation. “Government cannot afford to spend anymore because the room for additional spending is limited. Higher government spending does not translate to higher growth or revenues.”
