DA demand answers on stealth R2 billion to bailout SAA

The Democratic Alliance (DA) notes with concern reports that funding from an as yet unknown source(s) has been provided to the bankrupt and loss-making South African Airways (SAA) to enable it to pay salaries and to continue to trade.

The DA will write to Tito Mboweni, the Minister of Finance, to request details of the amount and sources of these funds paid to SAA.

This funding, whether some form of loan from banks, the sale of state assets, or even the illegal use of the R5 billion budgeted for the repayment of  SAA loans means that once again the ANC government has opted to fund their SAA vanity project rather than the desperate needs of destitute SA’s and the 10,0 million unemployed South Africans.

National government simply cannot keep continuing draining the national fiscus, by bailing out failed state owned enterprises like SAA.

Despite writing to President Cyril Ramaphosa to request that he support Tito Mboweni, his Minister of Finance, in his position to refuse any further taxpayer bailouts for SAA it is clear that Tito Mboweni has lost the battle and the so-called “developmental state” protagonists such as Pravin Gordhan, have won the day. A very sad outcome for South Africans and another nail in the coffin for a Moody’s downgrade.

The DA maintains, only liquidation is now the answer for SAA and no further bailouts can be paid to them.

Statement issued by Alf Lees MP - DA Member of the Standing Committee on Public Accounts, 26 January 2020