DA rejects R5 billion SAA bailout
18 November 2015
The DA today calls on Treasury to immediately and publically reject the South African Airway’s (SAA) request for a further bailout of R5 billion. This request is ludicrous given the financial constraints our country is currently facing. It will drive our economy over the fiscal cliff, undermine economic growth and result in job losses.
It is high time that Treasury stopped tip-toeing around this on-going crisis. We need bold leadership now. To this end, the DA calls on the Minister of Finance to initiate a process that would see SAA privatised. This is in accordance with our alternative budget.
The Minister of Finance has had his chance and it hasn’t worked. Privatisation can now be the only way forward.
Indeed, it was confirmed today that SAA has made a further loss of R648 million in the first six months of the current financial year and is looking for further guarantees from government to the tune of R4 billion- R5 billion so it can finalise its 2014-15 financial statements. This follows Treasury granting SAA a further guarantee of R6.5 billion just last December.
Treasury must also send a clear message to the carrier that continued financial mismanagement and brazen, irrational conduct will not be allowed to continue. We therefore also call for the Chairperson of SAA, Dudu Myeni, to be suspended – immediately. Ms. Myeni seems resolute on destroying this entity. She has lost all support, evidenced by the resounding vote of no confidence in her by SAA pilots. There can be no more excuses.
If South Africa is to weather the economic storm ahead, we need to be able to ensure that every single rand is spent wisely and on the right projects. We simply cannot afford to waste any more money on a national carrier that is not profitable.
Future generations will judge this government’s ability to take these bold steps at a time when our economy so desperately needed it. It’s now time to start privatising SAA, and fix this mess – once and for all.
Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 18 November 2015
