SAA Business Rescue Plan

Image via Adobe Stock

South Africa: Today’s latest news and headlines, Tuesday 14 July

SAA business rescue practitioners and creditors meet today to decide the national carrier’s fate.

SAA Business Rescue Plan

Image via Adobe Stock

Never miss a beat when it comes to the latest news in South Africa; review all major headlines on Tuesday 14 July.

As South Africa comes to grips with the reintroduction of tougher lockdown restrictions, the sustainability of two key state owned enterprises — Eskom and South African Airways (SAA) – comes under the microscope once more.

TODAY’S LATEST NEWS IN SOUTH AFRICA, Tuesday 14 JULY

SAA meets with creditors and employees as liquidation looms

As part of ongoing engagements with primary stakeholders, SAA and its associated business rescue practitioners are scheduled to meet with creditors and employees as the debate surrounding liberation versus liquidation ages on. In the lead-up to today’s meeting, the Department of Public Enterprises, led by Minister Pravin Gordhan, has called on both unions and creditors to support the creation of a new national carrier.

Government’s latest calls come after unions and SAA managed to find some common ground in the form of severance packages. Gordhan confirmed that his department had offered over R2 billion to float the retrenchment process.

Today, the controversial business rescue plan — which could cost the South African taxpayer anywhere been R16 billion and R30 billion to save SAA – will be voted on by the national carrier’s creditors.

If less than 75% of stakeholders vote in favour of the business rescue plan, SAA will be face liquidation, which, if finalised, will result in diminished severance pay-outs.

Mkhize details the logic behind the liquor ban

Following on from President Cyril Ramaphosa’s Sunday-night address — which revealed the reintroduction of a curfew and the prohibition of alcohol sales — the National Coronavirus Command Council (NCCC), tasked with deliberating and amending regulations within the Disaster Management Act, faced a tough line of question on Monday afternoon.

While an initial briefing by Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma failed to provide any solid data relative to the re-banning of booze, Health Minister Zweli Mkhize detailed government’s consideration process. Echoing concerns raised by Ramaphosa – which cite a ballooning burden on the country’s healthcare systems — Mkhize argued that medical capacity needed to be reserved for coronavirus cases. Mkhize explained:

“The data behind the alcohol ban shows that there was a significant reduction in alcohol-related trauma cases at our hospitals. However, the number of cases increased significantly when the ban was eased.

Research suggests that while an alcohol ban could ease pressure on hospitals, it can also reduce intimate partner violence in many households across the country.”

Mkhize added that hospital visits and admissions had increased by more than 60% since the sale of alcohol was permitted under Level 3 lockdown.

Another setback for the tourism industry

The tourism industry, which has lay dormant for more than three months since the lockdown was first implemented back in July, shows little signs of recovery under Level 3 lockdown. This was exemplified by the NCCC’s decision to revoke ‘leisure’ travel and accommodation after initially alluding to certain allowances. Minister Dlamini-Zuma sought to clarify government’s position on Monday and reiterated — in accordance with the gazetted regulations – that hotels, B&Bs and guesthouses would only be allowed to operate for quarantine purposes or business trips.

Despite the tourism industry’s pleas for lenience, Dlamini-Zuma said that the travel and hospitality industry would need to remain in limbo to stem a further surge in infections, saying:

“You cannot, for example, call your family and go and ‘enjoy your best lives’. That is still not allowed.”

The Tourism Business Council of South Africa (TBCSA) criticised government’s approach and confirmed that it was ‘weighing up its options’.

Ramaphosa says pandemic a chance to fast-track universal healthcare

President Cyril Ramaphosa says the global COVID-19 pandemic crisis has starkly highlighted the value of universal health coverage in responding to health emergencies, and the need for robust health systems to save lives.

Speaking at the virtual launch of the United Nations Secretary General’s Independent Accountability Panel 2020 Report on Monday, President Ramaphosa reiterated that the pandemic is placing an additional burden on already constrained health care systems.

He said South Africa fully supports the efforts of the World Health Organisation (WHO), to ensure there is universal health coverage across the world.

“The reality that we must now confront is that the response to the COVID-19 crisis has required countries to reprioritise the allocation of their resources by diverting crucial technical and financial resources from other critical areas,” President Ramaphosa said.

Themed, “From Page to Action: Accountability for the Furthest Left Behind during COVID-19 and Beyond”, the report brings attention to data and accountability for the rights of women, children and adolescents health, through the COVID-19 pandemic and beyond. (Source: SAnews)

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HOROSCOPE TODAY

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