• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

SA 'haggling' to secure R3bn from Airbus

Mar 01 2011 13:57 Sapa

Related Articles

State aborts Airbus contract

Airbus repayment deal close

SANDF chief now an ambassador

SANDF medics helping at 32 hospitals

SANDF mum on piracy surge

 
Cape Town - The government is "haggling hard" to get manufacturer Airbus to pay it nearly R3bn, an amount linked to the South African National Defence Force's cancelled contract for eight Airbus A400 aircraft, Defence Minister Lindiwe Sisulu said on Tuesday.

Speaking to members of parliament's watchdog standing committee on public accounts, she said the money should have been paid back when the contract was terminated in 2009.

"In terms of the contract that we have with Airbus, the money should have been paid out when the contract was terminated at a particular time, and we are haggling hard to make sure that we can get it back," she said.

Earlier, defence secretary Mpumi Mpofu told MPs that Airbus was claiming it could not pay the lump sum, and were seeking terms.

"They have pleaded they do not have R3bn to pay back in a single cheque," she said.

The matter has been referred to Treasury to approve a repayment schedule.

In November 2009, cabinet announced it was cancelling the contract. It said at the time that the cancellation was due to "extensive cost escalation and the supplier's failure to deliver the aircraft within the stipulated timeframes".

It further said an amount of R2.9bn "would be refunded to National Treasury as per the contract provisions".

airbus  |  sandf
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...