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The government has confirmed that it has paid millions of rands to a private firm to drive the merger of SAA, Mango and SA Express. Public Enterprises Minister Lynne Brown has told Parliament on Tuesday that the private firm has been paid R12.1 million for its consultancy work. She said the company will draft the plan to merge the three airlines. President Jacob Zuma announced in his State of the Nation Address last year that SAA will be merged with the two airlines to cut costs and strengthen the balance of the national carrier. Deputy President Cyril Ramaphosa has been appointed to oversee ailing state-owned entities including SAA and the SA Post Office. In her written reply to Parliament Brown said she will not talk much about this matter.
“Bain and Company is the consultant appointed for the development of an optimal corporate structure to realign the state-owned entities,” she said. She added the total cost of the project will come to R12.1 million.