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Published on : Friday, May 29, 2015
“The going concern status of the airline has been restored, costs have been reduced and operational efficiency is improving,” he said during the debate on the Budget vote for the Presidency in Parliament in Cape Town on Tuesday.
“We have confidence that the newly developed long-term turnaround strategy will ensure that SAA continues to play a crucial role in facilitating commerce and tourism within our country and abroad.”
In December, President Jacob Zuma assigned Ramaphosa to oversee the turnaround of SAA, the Post Office and national power utility Eskom, three critical state-owned enterprises (SOEs) which are drivers of the economy. SAA was also transferred from the Department of Public Enterprises to the National Treasury.
“We are also encouraged by progress at the South African Post Office, where the strategic turnaround plan has been finalised for submission to Cabinet,” Ramaphosa told the National Assembly.
He said the administrator appointed by Minister of Telecommunications and Postal Services Siyabonga Cwele last year had undertaken a thorough diagnostic review of the challenges at the Post Office, and a business model which was better suited to the changing postal services environment had been developed.
With regards to Eskom, progress had been made in the implementation of the government’s plan to stabilise the utility and Eskom would regain its strength in the country’s economy, the deputy president said.
“As the supplier of around 95 per cent of the country’s electricity, Eskom is critical to our economic growth and sustainability. As we are all acutely aware, the company has been experiencing severe generation constraints, exacerbated by significant operational and financial challenges,” he said.
He added that the Presidency welcomed the appointment of Eskom Acting Chief Executive Brian Molefe.
Tags: South African Airways