Ramaphosa moves SAA back to public enterprises ministry
Johannesburg - President Cyril Ramaphosa has transferred the administration of South African Airways (SAA) back to the public enterprises ministry, headed by Pravin Gordhan.
The struggling airline previously fell under the administration of the finance ministry, where it had been moved to from public enterprises.
Ramaphosa signed the proclamation, which transfers the powers, on July 25. The transfer was published in the government gazette on August 1.
The Treasury said the decision to move the state-owned airline was prompted by a study to improve the company.
“The transfer follows a study commissioned by National Treasury and the Department of Public Enterprises to develop the optimal group structure for the state-owned aviation assets. The recommendations from this study, if considered appropriate, may require implementing changes to the group structure of SAA,” said the Treasury in a statement on Wednesday.
“As the executive authority for other major state-owned companies, including SA Express, the Minister of Public Enterprises is best placed to be the custodian of all of the state’s aviation assets. These assets are South African Airways (SAA) and its subsidiary, Mango, and SA Express.”
SAA has been struggling financially for years and has had to receive numerous bailouts from the government to help it stay afloat.
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