Saa is bankrupt, Transnet's procurement and tendering processes are being investigated, Denel has instituted a turnaround plan and the South African Post Office is using debt to fund operations.
Mboweni also stressed that financial support for Saa, Denel and SABC would be conditional on them selling their non-core assets.
Treasury was adamant that financial support for state-owned enterprises such as Saa, SABC and arms manufacturer Denel would depend on them offloading their non-strategic assets.
Presenting the 2019 budget view to Parliament, Mboweni noted that funding requests from Eskom, national airline Saa, public broadcaster SABC, state arms' company Denel and other financially challenged state-owned enterprises had increased, with several requesting support.
DA leader Mmusi Maimane said Mboweni "minced his words" on what to do with cash-strapped state-owned companies such as Saa, Denel and the SABC.
@equal_education — Roné McFarlane (@Rownsterr) February 20, 2019 Tito has been busy on these streets calling for govt to sell Saa.
Corporate treasury manager at Peregrine Treasury Solutions, Bianca Botes, said now that economic D-day was upon us markets would seek clarity and answers for embattled SOEs with the focus on Eskom and Saa, taxation and the government’s debt and the wage bill.
Saa and South African Post Office receive nearly R8 billion in additional funding State-owned enterprises like Eskom and Saa have been an enormous drain on government resources.
“There is a little bit too much time taken on reconstructing the so-called state-owned entities and it’s going to allow more rot and more maladministration and we will be paying.” He said Mboweni should have trimmed the fat more when it comes to government's huge wage bill: “We think that the expenditure should have been reduced because of the corruption and the maladministration over the last number of years.” WATCH: MPs slam Mboweni's speech Saa WELCOMES SUPPORT FROM GOVT Meanwhile, South African Airways (Saa) CEO Vuyani Jarana said he welcomes the commitment from government to support state-owned enterprises.
Meanwhile, South African Airways (Saa) has been waiting on an announcement from Finance Minister Tito Mboweni on when it will receive the rest of the R21 billion government bailout it requested.