SAA: BRPs suspension of operations just another delaying tactic to secure funding

30 September 2020

The Democratic Alliance (DA) objects to the South African Airways (SAA) Business Rescue Practitioners’ (BRP) using delaying tactics to give the ANC government more time to secure Taxpayer money to bail out the defunct airline.

The decision by the BRPs to suspend all the airline’s operations whilst they are pursuing a process to put the airline under care and maintenance until funding discussions are completed, once again demonstrates that the entire rescue process was a politically driven sham.

With no private investors in sight there should be only one option for SAA at this point - liquidation.

It is unconscionable that the ANC government, during this time of economic upheaval and joblessness, would even consider allocating desperately needed tax revenue funding for a vanity project.

The DA urges Banks and creditors to reject any appeal from the Ministers of Public Enterprises and Finance, Pravin Gordhan and Tito Mboweni, for additional government guaranteed loans.

It would be morally indefensible for banks to grant billions of Rands in additional loans to SAA. We understand that the banks have offered some funding in order to meet the voluntary severance packages for employees on condition that SAA is shut down. We hope that the banks will do the right and ethical thing and will not capitulate to pressure from Minister Gordhan and make the full R10.4 billion available to SAA.

The banks now clearly hold the future of SAA in their hands and must not let ordinary South Africans down by providing a financial lifeline to SAA.

The DA will explore every avenue to oppose such loans. We will also fight tooth and nail to oppose the possible R10.4 billion bailout for SAA in the Medium-Term Budget Policy Statement (MTBPS) in October.

Issued by Alf Lees, DA Member of the Standing Committee on Public Accounts, 30 September 2020