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R10.5 Billion Not Enough For South African Airways

South Africa’s government allocated the latest cash injection of $640 million for the country’s airways in last month’s mid-term budget, but says it will not put further money into the airline.

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South African Airways administrators has announced that the money owed to aircraft lessors and some creditors of South African Airways is not covered by a $640 million government bailout.

South Africa’s government allocated the latest cash injection of $640 million for the country’s airways in last month’s mid-term budget, but says it will not put further money into the airline.

Public Enterprises Minister Pravin Gordhan has disclosed that the government was not going put more money into the Airways and its ultimate aim is to rid itself of the Airways burden.

Related: South African airways to go into business rescue

The Airways administrators said that R1.7 billion owed to lessors and R600 million which it owes to creditors from before the airline went into administration nearly a year ago will not be covered.

That could complicate government talks with prospective investors in the national carrier, which has not made a profit since 2011.

The administrators also said the additional debts are “only payable from next year July and will be paid over a three-year period,” so the bailout money only covers “initial commitments”.

The administrators also forecast in June that SAA will lose more than R6 billion over the next three years. Some analysts expect greater losses given the damaging impact on air travel of the global Covid-19 pandemic.

Read also: South African Airways bailout talks stall

They also told lawmakers on Wednesday that R2.8 billion of the bailout monies was earmarked for employee-related payments, R2.7 billion for recapitalising SAA subsidiary Mango Airlines, catering arm Air Chefs and maintenance division SAAT, and R2 billion for working capital.

Another R2.2 billion will repay those who had bought tickets but not yet flown and R0.8 billion would go to creditors who had funded SAA since it went into administration.

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Money Transfer; CBN Changes Rule on Remittance

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The Central Bank of Nigeria has changed its remittance rule. And now, Nigerians can receive money in the currency it was sent in. Janet Ogunkoya, a financial analyst joined us on News central Now to explain the benefit of the new development.

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Champions League: 6 African Youngsters Feature As RB Salzburg Defeat Lokomotiv Moscow

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It was a celebration of African football talents as Red Bull Salzburg took Russian Premier League club Lokomotiv Moscow to the cleaners on Tuesday.

The Austrian giants ran out 3-1 winners away from home against a hapless Lokomotiv Moscow side with one of the six Africans involved, Nigerian-German teenager, Karim Adeyemi getting on the scoresheet.

Salzburg in the game, featured Zambian 22-year old winger Enoch Mwepu, 20-year old Malian midfielder, Mohammed Kamara and his 21-year old compatriot, Sekou Koita.

Others were 22-year old Cameroonian Jerome Onguene, Patson Daka, a 22-year old Zambian international and 18-year old goalscorer Adeyemi.

Salzburg went into the game sure of their non-progression from the group stage after Bayern Munich and Atletico Madrid sealed their places in the knockout stage.

The Austrian giants however needed the win to boost their chances of finishing in third place and earning a berth in the knockout phase of the Europa League.

Another that didn’t get to feature in the game was 22-year old Ghanaian midfielder, Majid Ashimeru.

Red Bull Salzburg are Austria’s biggest team and one with a rich talent pool. It has helped the rise of African talents in the past with some of them being Liverpool duo of Sadio Mane and Naby Keita, RB Leipzig’s Amadou Haidara, Moussa Diakité and a host of others.

The team has a solid recruitment system in Mali and Senegal and has recently snapped up Zambians. Salzburg also has 18-year old Nigerian youngster, Tijani Kazeem who has been loaned out to Hartsberg, a club in the Austrian top flight.

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World Aids Day; Ending HIV/AIDS Epidemic 2

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Dr Talabi Odunayo, and MD, Prettyhealth Care Ltd joined us on News Central Now as the world commemorates World Aids Day with the theme “Global solidarity, resilient services”.

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