The government should sell Telkom shares to bail out SAA
Cabinet should behave like a shareholder that is keen to create some sort of viable operation out of the mess
It is very good news that the Treasury has resisted the temptation – and pressure – to find yet more money to bail out chronically mismanaged SAA.
But given the decision to place the national airline in business rescue and its desperate need for another R4bn to implement the plan, perhaps now is not the time to exhibit such unwavering resolve. It does rather suggest there is limited united thinking on the matter at cabinet level.
Essentially, the Treasury is thinking like a banker rather than a shareholder. Now that SAA is in business rescue it would surely be far better for the cabinet to be behaving like a shareholder that is keen to create some sort of viable operation out of the process. A viable operation would certainly be easier to sell than the mess that could be created from a poorly managed business rescue. Also needing to be considered are the thousands of jobs involved...