DURBAN - Minister of Finance Malusi Gigaba just completed his Medium Term Budget Policy Speech.
Gigaba will sell Telkom shares to save state owned enterprises South African Airways (SAA) and South Africa's postal service.
Government’s share in Telkom is estimated to be worth between R14 billion and R20 billion.
Gigaba said that the expenditure ceiling could be breached by R3.9 billion in the current year, as a result of government’s recapitalisation of South African Airways and the South African Post Office.
“We aim to avoid a breach of the expenditure ceiling this year through the disposal of assets", Gigaba said during his mini budget speech.
Gigaba added that the Telkom shares would be sold with an option to buy back at a later stage.
Here are some Twitter reactions from South Africans that were watching the speech:
The bailout of #SAA has my colleagues in the National Assembly shocked 😱😱😱
R13 Billion 😰😰 #MTBPS pic.twitter.com/Ye8EmvFyFp
— Ricardo Mackenzie (@ricardomackenzi) October 25, 2017
VIDEO: EFF reacts to news Govt will sell part of Telkom stake to fund SAA and Post Office #MTBPS17 pic.twitter.com/CVgpqdGG6n
— POWER987News (@POWER987News) October 25, 2017
The bankrupt airline #SAA gets a R10 billion bailout.
Anything for #feesmustfall
Or #desalination in the WC?
Or cancer patients in KZN? https://t.co/bJWHln2kI4
— James Styan (@jamesstyan) October 25, 2017
Gigaba to take R13bn from Telkom shares sale to plug SAA's hole. A classic example of throwing good money after bad? #MTBS2017
— Daniel Silke (@DanielSilke) October 25, 2017
#SAA and #SABC now have a new board to guide the businesses in the right direction because of Government #MTBPS2017 #MTBS2017 @IOL
— Business Report (@busrep) October 25, 2017
How can Gigaba want to sell part of SOE that are profitable? Why can't he sell SAA shares not Telkom? Something fishy here.. #MTBPS2017
— Matshaya, Doyi (@Maliqo) October 25, 2017
#MalusiGigaba denied for 3 months that he's planing to sell Telkom Shares for SAA. Of course the Rand must react negatively to misleaders
— Tshepo (@Tumiishi) October 25, 2017