A memorandum of understanding between the Division of Public Enterprises and South African Airways’ (SAA’s) enterprise rescue practitioners (BRPs) have put a freeze on the unilateral sale of the airline’s property a minimum of till June 30.
Within the doc seen by Moneyweb, the 2 events decide to a ‘outlined interim interval’ the place the division shall be given a chance to formulate proposals that may go into the ultimate enterprise rescue plan, both for a restructured SAA or the brand new airline.
Throughout this era which, on the newest ends on June 30, the BRPs and the division agreed that there shall be “no sale of property nor negotiations on this regard with out session with and the involvement of the division”.
The 2 events additionally conform to work collectively within the growth of the rescue plan, that the target of the method needs to be a restructured new airline and that as many roles as attainable needs to be saved.
Three workstreams shall be established within the work in direction of a brand new or restructured airline.
- The monetary workstream shall be chargeable for figuring out how a lot cash remains to be out there at SAA and what shall be wanted to make sure the continued operation of SAA till June 30.
- An asset workstream will decide what property shall be wanted within the new nationwide provider.
- The workstream for labour goals to streamline the retrenchment course of initiated by the BRPs and the parallel compact that authorities and labour entered into.
The settlement follows discussions with the BRPs following DPE Minster Pravin Gordhan’s presentation in a joint parliamentary assembly final week, the place he criticised the practitioners for less than delivering an “define” of a enterprise rescue plan within the 5 months for the reason that course of began. He additionally questioned the way in which that Les Matuson and Siviwe Dongwana spent the R5.5 billion in post-commencement funding, stating that not sufficient was performed to understand financial savings.
The BRPs have mentioned that with out additional authorities funding the one choices left had been a cautious wind-down of the enterprise or liquidation. Within the wind-down choice, all employees would want to just accept a severance bundle settlement that might be based by means of the sale of chosen property.
Chatting with the committee, Gordhan mentioned there can be no “hearth sale of property” or liquidation of the airline when there are numerous alternate options which may nonetheless be pursued.