state-owned entity | 90.5 FM Radio

The bankrupt, state-owned SAA airline company will manage to pay its staff salaries for January, but that’s where it all ends.

With a bankrupt government failing to fulfill its pledge to pump another R2bn into the soe, it looks as if SAL will not remain standing.

The airfreight company faces three serious problems, and the solutions to this are vague and unclear, as different measures could not create a better situation.

The SAA needs at least R2bn to get its planes up, but with the many cancellations it has had to announce, its passengers are becoming less and less and profitability is becoming almost impossible.

The government’s inability to borrow R2 billion from any banker in the country has failed, which is now seen as a vote of no confidence in the financial approaches the regime is following.

It can inflict a final blow.

The large number of workers who should never have been hired is another reason why the
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South Africa has blocked Denel’s huge contract worth billions of Rand. The contracts, the largest of which are for weapons in the two countries, Saudi Arabia, and the other in the United Arab Emirates, have been blocked and could eventually be canceled by the buyers.

South African manufacturer Denel, which, like many other state entities, is currently struggling to keep its head above water, can hardly afford to lose the giant orders because a dispute over inspection has arisen.

Informed sources point out that this could also mean that thousands of jobs could be jeopardized by the struggling armaments manufacturer.

The inspection dispute apparently revolves around a clause in the export documents that requires foreign customers not to transfer weapons to third-party institutions or countries.

The provision further states that South Africa is allowed to inspect the facilities, and the provisions could lead to cancellation of orders a
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Posts tagged with 'state-owned entity'

SAA’s wings cut – bankrupt SOE can only pay salaries in January

Denel’s huge contract worth billions of Rand halted after dispute over inspection arises – How long will the cash-strapped SEO remain standing?