Bankrupt SAA must explain about sponsorship of national soccer team
24 March 2016
It is unacceptable that the bankrupt SAA which have been kept functioning with billions of rand of taxpayer’s money is now sponsoring the national soccer team with millions of rand, Dr. Pieter Groenewald, the FF Plus’ chief spokesperson on public enterprises says.
Dr. Groenewald says the airline must explain exactly what the sponsorship entails and where the money for the sponsorship will come from.
According to a report in News 24, an economist of the Free Market Foundation (FMF), Loan Sharpe, said last year that the estimated financial assistance of government given to the SAA over the last couple of years was anything between R14 billion and R45 billion. This assistance was provided in the form of loans which is reflected in the states’ balance sheets as well as through guarantees.
According to Dr. Groenewald, the damage caused to the country’s economy by SAA amounts to much more than this amount, as the airline is supposed to be a profitable enterprise which has to plough back money into the economy.