SAA Business Rescue Practitioners Walked Aways with Millions Each – Big Payout

The business rescue process for South African Airways (SAA) has cost South African taxpayers a total of R169 million, according to a report by the Sunday Times. According to documents seen by the publication, R169 million was paid to six consulting firms as part of the failed state airline’s business rescue process.

R22.2 million was reportedly paid to the business rescue practitioners, and R38 million was paid to PricewaterhouseCoopers Advisory Services for liquidation calculations, cash flow projections, and the development of a new sustainability model.

Business rescue practitioners Les Matuson and Siviwe Dongwana were paid R1.2 million and R1.7 million respectively in their personal capacities, the report stated.

Finance Minister Tito Mboweni announced during his medium-term budget speech on Wednesday 28 October that the government will allocate R10.5 billion to SAA to help it implement its business rescue plan.

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This announcement drew sharp criticism from many commentators, including Sygnia CEO Magda Wierzycka, who said the government is using money which can be better spent elsewhere on trying to save something completely unsalvageable.

“The ANC just sacrificed the future of South African children and the security of its citizens to try yet again to save something completely unsalvageable,” said Wierzycka.

She said using tax money for education and police is far more sensible than trying to save a bankrupt airline.

DA shadow minister of finance Geordin Hill-Lewis echoed Wierzycka’s comments in a statement regarding Mboweni’s budget.

“The ANC government has chosen to cut essential services to the public, like education and policing, to fund another bailout of SAA,” said Hill-Lewis.

“This is an indefensible, immoral choice. It amounts to throwing South Africans under the plane to pay for SAA.”

Sunday Times and MyBroadband

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