11 September 2017

South Africa: Parliament - SAA Remains Gigaba's Albatross Amid Political Squawking On Route to Medium-Term Budget Statement

Amid the political noise of the ANC elective contests towards its December national conference, and the general state of disruption in South Africa's politics, it's difficult to keep eyes on what matters - the national coffers. Regardless of who wins the ANC party presidency that traditionally has led to the Union Buildings, what matters is the state of the national purse. Details will emerge in October's Medium-Term Budget Policy Statement. But government's wiggle room is constrained not only of a multibillion-rand bailout for SAA and other state-owned entities (SOEs), but potentially also another year of dipping tax revenue.

For SAA and the finance ministry, 2017 is a re-run of 2015. Two years ago the national carrier was unable to submit its annual financial statements to Parliament as required because it could not complete the financials because it could not balance the books. This came despite the bailout of R6.5-billion it had received in January 2015, which had raised the total government guarantees to R14.4-billion.

Two previous finance ministers, Nhlanhla Nene and Pravin Gordhan, had to ask National Assembly Speaker Baleka Mbete for several extensions to SAA's submissions of its financials. This only happened after a further R4.7-billion...

South Africa

Image of Supermassive Black Hole at Galaxy's Centre Stuns Scientists

In the months and years to come, the data used to build a picture of the centre of the Milky Way will be analysed and… Read more »

See What Everyone is Watching

Copyright © 2017 Daily Maverick. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.