Mboweni announces multi-billion Rand bailouts for SABC, SAA and Denel

Mboweni announces multi-billion Rand bailouts for SABC, SAA and Denel

Finance Minister Tito Mboweni has announced that cash injections for state-owned entities like SAA and the SABC will be handed over in small chunks, and only when certain conditions are met.

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One of the most alarming bailouts mentioned by Finance Minister Tito Mboweni is the planned R3.2 billion for the SABC.

Mboweni revealed the injection for the cash-strapped broadcaster in response to the debate on the Appropriations Bill.

While bailouts will be made available for the SABC, Denel and South African Airways, strings will be attached, according to Mboweni:

"We would not just make that available tomorrow, it would be a mistake, but we will release in chunks as certain conditions precedent are met, to make sure there’s progress in improving the organisation."

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READ ALSO: Finance Minister Tito Mboweni confirms R59 billion bailout of Eskom

Chief restructuring officers for the entities will be announced on Wednesday, Mboweni revealed, explaining that they would work with the management of the entities to get them back on track, reports EWN.

The Finance Minister warned that the nation's debt to GDP ratio was 'unacceptable':

“Thus providing the basis for a serious crisis in the country."

Mboweni commented that financial management needed to be improved, both for the state and citizens, with people needing to understand and accept the notion of paying for the services they use.

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Source: Briefly.co.za

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