DA to request Parliamentary legal opinion on Gigaba’s SAA bailout
2 October 2017
Finance Minister, Malusi Gigaba’s, use of section 16 of the Public Finance Management Act (PFMA) to bail out South African Airways (SAA) again, to the tune of R3 billion, could have been avoided and may have been unlawful.
The DA have therefore written to the Chair of the Standing Committee on Finance, Yunus Carrim, to request that a legal opinion on this be obtained from the Parliamentary legal advisors.
A number of instances clearly showed that SAA was in deep trouble yet again. These include:
- As early as 27 June, a 12-month cash flow analysis clearly showed that SAA would not have enough cash to pay suppliers in full in July, August and September;