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.
Collin Cruywagen, Spokesperson for the Department of Public Enterprises, referred all questions with regard to SAX’s financials to the airline. He said the department could not comment as the carrier had yet to hold its AGM as its financial records were not finalised. He added, however, that Finance Minister Nhlanhla Nene recently said state-owned carriers had to start living off their own balance sheets.
At the time of publication, SAX could not be reached for comment.
