DA CONCERNED SAA WON’T BE PRIVATISED DESPITE BANKRUPTCY REPORTS
Published On 8 Aug, 2017

 

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The Democratic Alliance (DA) says it’s concerned that there will be no privatisation of South African Airways (SAA) despite the fact that the airline is practically bankrupt.

The opposition party says SAA has been recording a loss of R1.4 billion for the first three months of the current financial year.

Finance Minister Malusi Gigaba has announced that the national carrier will not be privatised and that it just needs to be turned around.

The airline has been surviving on bailouts in the past years and says that it needs at least R13 billion over the next five years to stay a float

DA Shadow Deputy Minister of Finance Alf Lees says, “Minister Gigaba informed the meeting after he was asked about it that they were considering taking R6 million from the government employees’ pension fund to be able to bailout SAA.

“So if the pension needs the money from the government, we;; we’re not sure it will come from.”

SAA board chairperson Dudu Myeni has promised to act against those fingered in corruption at the airline.

Myeni appeared before Parliament’s Finance Committee on Friday to discuss the airline’s financial troubles.

Members of Parliament wanted to know why it’s taken so long for the board to take action against those who are stealing from the airline and adding to its woes.

After eight years as a member of the SAA board, Myeni has less than a month left of her contract.

With five chief executives in as many years, the airline has repeatedly suffered losses under her tenure.

But Myeni said those pilfering from the airline will not get away with it.

“The people that are stealing at SAA are the ones who hate me today. They are stealing the reports are showing, it will come out.”

Gigaba said the airline’s failure to implement a 2013 turnaround strategy has put SAA in the cash-strapped position it is currently in.

While he said he cannot yet disclose who will replace Myeni, he’s pledged that in future, at least two people with aviation experience, will serve on the SAA board, and its executive committee.

 

Source:- ewn

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