DA rejects obscene R30 billion SAA business rescue plan
17 June 2020
The Democratic Alliance (DA) categorically reject the proposed business rescue plan by the South African Airways (SAA) Business Rescue Practitioners (BRPs), Les Matuson and SiviweDongwana, that relies on a R32.65 billion bailout from Government.
The DA will write to the Minister of Finance, Tito Mboweni, to ask him to do what is right and oppose this ridiculous bailout. We will also write to the Competition Tribunal to request an investigation into this proposed SAA bailout as we are of the view that it violates the Competition Act, as the airline will get an unfair competitive advantage over the other South African airlines – none of which have been granted bailouts but remained profitable.
The business rescue plan, not surprisingly, calls for massive bailouts and reflect massive losses over the next three years. The total cash requirements over the three years would amount to:
Lenders - R16.4 billion