An illegal bailout for SAA Technical?
29 March 2021
The DA has submitted parliamentary questions to the Minister of Public Enterprises, Pravin Gordhan, to establish what the source of funds for the payment of SAA Technical (SAAT) salaries for March 2021 is to be or have been sourced from.
Reports indicate that SAAT has run out of cash and does not have sufficient funds to pay salaries for March 2021 and the following months. Reports indicate that as at 25 March, SAAT had a mere R10 million in cash available which, given the massive overheads and excessive staff compliment, is a fraction of the cash required to meet staff salaries and other current liabilities.
The SAA Business Rescue Practitioners (BRPs) who claim to have no jurisdiction over SAAT and other SAA subsidiaries, never-the-less included a massive R2,7 billion taxpayer bailout for the SAA subsidiaries in the R10,5 billion business rescue plan bailouts. According to the Minister, this R2,7 billion bailout will only be available once a special Appropriations Bill has been passed by Parliament sometime later this year and probably not before the end of May 2021. This means that SAAT will be without the necessary funds to pay salaries and other operating expenses not only for March 2021 but also for April and May 2021.
So where will the money for salaries come from?