Adds element, context JOHANNESBURG, Dec 3 (Reuters) - The S
Adds element, context
JOHANNESBURG, Dec 3 (Reuters) – The South African authorities has transferred 1.5 billion rand ($98 million) to directors for nationwide airline South African Airways (SAA) however the funds can’t be used but, the directors mentioned on Thursday.
The directors mentioned the situations the Division of Public Enterprises (DPE) hooked up to how the cash must be spent had been in contravention of labour and corporations legal guidelines.
“We’re unable to utilise the funds till the situations have been amended by the DPE,” they added in an announcement.
A DPE spokesman mentioned the division would remark later.
SAA entered an area type of chapter safety in December final 12 months after roughly a decade of monetary losses, and its fortunes worsened after it grounded flights due to the COVID-19 pandemic.
It halted all operations on the finish of September when funds ran low.
The federal government awarded SAA a 10.5 billion rand bailout in October’s mid-term price range, however funds from that bailout weren’t anticipated to movement till mid-January.
SAA is one among a handful of struggling state companies which have positioned big pressure on the general public funds of Africa’s most industrialised financial system over a few years.
($1 = 15.3206 rand)
(Reporting by Alexander Profitable; Modifying by Emma Rumney and Pravin Char)
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