Treasury refuses Transnet’s R100bn funding request

The medium-term budget policy statement does not allocate any funding to Transnet, despite its request

Picture: SUPPLIED
Picture: SUPPLIED

The Treasury has shot down Transnet’s request for a R100bn bailout to fund its debt obligations and capital investments, with finance minister Enoch Godongwana saying in his medium-term budget policy statement (MTBPS) that Transnet’s request for financing was not accompanied by guarantees the entity would improve its balance sheet.

This means the state-owned logistics company’s board, led by Andile Sangqu, would most likely have to go back to the drawing board and re-formalise its turnaround plan, which relies heavily on government support for implementation.

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maekot@businesslive.co.za


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