SA ExpressEngineering News reports that the Department of Public Enterprises (DPE) issued a press release on Sunday regarding the business rescue process for state-owned regional airline SA Express.  

Noting that the airline’s business rescue practitioners (BRPs) had made a court application to liquidate SA Express, the DPE indicated that the government could provide no further financial support for the carrier.  “The government has provided more than R1.2-bn in urgent financial support to SA Express for the 2019/20 financial year, including the R300m released last October.  This was an attempt to restore the damage done to the airline by corruption and mismanagement perpetrated by previous leadership teams of the airline. … The damage done has turned out to be graver than initially assessed.  As a result, the Government is not in a position to give further fiscal comfort especially in these difficult economic times and considering the competing priorities,” the DPE stated.  Regarding the liquidation application, the DPE said that it would “determine its course of action” after studying it.   Regarding the airline’s workforce, the DPE assured that the government had gone to the Unemployment Insurance Fund (UIF) with a formal application, to make certain that SA Express employees received the support they needed.  The UIF has been asked to expedite the process.  The business rescue process for SA Express was initiated in February.

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