Gigaba looking to take R6 billion from pensioners to fund SAA

Today the Minister of Finance, Malusi Gigaba, confirmed that there will be no privatisation of South African Airlines (SAA) and that pensioners' money is being considered to fund the airline.

All of this despite the fact that the airline is practically bankrupt, recording a loss of R 1.4bn for the first three months of the current financial year.

SAA’s corporate plan shows that the Public Investment Corporation (PIC) is one of the identified sources under consideration for funding SAA to the tune of R 6bn. This revelation was confirmed by the Finance Minister in Parliament today.

Considering that privatisation is off the cards, it means that these funds would have to come in the form of a loan or a bailout. This puts millions of pensioners at the risk of losing their hard earned money.

The DA is strongly opposed to the idea of targeting vulnerable pensioners to bailout SAA, which continues to make losses with no signs of turning around in sight. The DA will continue its fight to protect the vulnerable in the face of the black hole that is SAA.

Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 4 August 2017