The future of airline Mango remains uncertain as public enterprises hold back the bailout funds – The Citizen

The fate of the deceased budget carrier Mango is still no one guessed.

It can be sold to an investor, but delays caused by a bunfight between the business bailout professional and the public enterprise department can force liquidation.

The intrigue surrounding state-owned aviation assets in recent years leaves more questions than answers.

Pieces of the puzzle include Mango’s extensive corporate bailout and SA Airways chairman John Lamola’s refusal to allow the budget carrier to optimize bailout funds for a reboot of working capital in December.

The sale process of Mango was delayed due to the withholding of part of this rescue loan by the public companies.

Then, the legal show that followed with business rescue practitioner Sipho Sono who forced Minister Pravin Gordhan’s purse to open with a lawsuit.

A bidder who did not enter the subsequent rounds of the investment process told The Citizen that the process required the successful bidder to have Rand 200 million in cash.

READ ALSO: SAA board of directors signs Mango’s death sentence: 709 jobs probably lost

The unsuccessful bidder also claimed that the only two assets it took over were a spare engine aircraft, valued at between R50 and R100 million, as well as a technologically outdated custom reservation system that would still have to be replaced.

Mango also had a brain drain. Only a handful of staff remain, including senior management and relevant officials.

Then, there is the sale of a 51% stake in SAA to the Takatso Consortium for R51, as announced this week.

Democratic AllianAlf Lees of ce said Mango’s sideshow and his timing for closing Takatso’s transaction are “curiously fortuitous” and suggested that the likely outcome would be that Mango is liquidated to make way for Lift.

READ ALSO: The business bailout suggests that Mango could be dumped

“Shame on Gordhan and his cadres for underestimating the intelligence of the nation; shame on them for trying to play a very flawed game with big toys that don’t belong to them.

Taxpayers have bailed out SAA over the past decade and a half for around R50 billion.

The Takatso transaction brings together the resources of the SAA group, SAA the airline, SAA Technical and Air Chefs. Excludes Mango.

Delays in palming off from Mango can jeopardize the entire sales process.

He said this They are two months ago, when the 399 million rupees remained unpaid to settle the balance of business rescue activities.

By the end of March, a desperate Sono said he would engage with SAA to release the funds, which had finally been paid to Mango’s shareholders by the public enterprises.

Mango wouldn’t answer any questions.

Spokesman Benediction Zubane said: “We must remain silent at this stage until further notice.”

He said the “gravitas of the matter” at the moment must be understood.

Lees called the process of saving and selling Mango “flawed” and “a joke”.

He said that as with the SAA-Takatso agreementmost of the aspects are shrouded in mystery by public enterprises.

But he will keep asking questions until someone gives in and shares the truth.