Government will sell off state owned assets (SoA) to fund an enormous SAA bailout.
Finance Minister, Malusi Gigaba, in a letter to Parliament, says: “Government is currently identifying assets for disposal to offset the expenditure incurred and render the operation neutral in respect of the current year’s budget balance.”
This comes after government recently injected R2,3bn (€153 million) into the struggling airline to avoid the national carrier defaulting on a loan from Standard Chartered Bank.
However, the Minister’s Spokesperson, Mayihlome Tshwete, says there is no truth in rumours that Telkom has been identified as the SoA that will see parts of it sold off.
“The investigation into which assets could be sold off is still under way, so no one singular asset has yet been identified,” says Tshwete.
The full details on which SoA will be sold off will be announced in the Minister’s mini budget in October.
