DA welcomes Treasury position to stop all bailouts to SAA and close the airline
The Democratic Alliance (DA) welcomes the decision taken by National Treasury to stop any further bailouts to SAA and the recommendation that the airline be closed down.
In a presentation before the Standing Committee on Finance and the Select Committee on Finance, Treasury recommended that SAA should be closed and that:
“no further action required in terms of bailouts except settle guaranteed debt as entity is insolvent and BRPs have not released turnaround plans”
This clarity of thought is in complete contrast to the stance taken by the Department of Public Enterprises which continues to mislead the public that funds for the SAA Business Rescue Plan, proposed by the Business Rescue Practitioners (BRPs), have been budgeted for.
The proposed SAA Business Rescue Plan, requiring total funding of R33 billion over the next three years, projects operational losses of R6.4 billion over those three years with a return to profit in the fourth year. However, the plan offers no guarantee and indeed no likelihood that the operational losses will be as projected and will miraculously change to profits in the fourth year.