Myeni approached PIC for R6 billion for SAA

The DA has noted the media report that Ms Dudu Myeni has asked the Public Investment Corporation (PIC) for R6 billion to bail out beleaguered South African Airways (SAA), an airline that she has basically run into the ground.

While the PIC reportedly refused these requests this is yet another reason, to add to the mountain of reasons to remove Myeni. She now appears to be involved in the planned raid on pensioners’ money to prop up SAA and other bankrupt State-Owned Enterprises.

PIC boss, Dan Matjila, apparently had to answer to allegations against him that were mysteriously apparently leaked after he turned down Myeni’s request. It’s concerning that Matjila is apparently unable to do his job without political interference.

The Minister of Finance, Malusi Gigaba, is dead wrong. The presence of Ms Dudu Myeni on the SAA board at all, let alone as Chair, is neither a legal requirement nor is it prudent. In fact, it is downright irrational and completely irresponsible of Gigaba to try to find technical means to retain Myeni on the SAA board.

SAA has been in constant need of rescuing, facing a R10 billion funding crisis in a few days’ time. The setbacks for SAA continue to pile up:

- Citibank has reportedly refused to extend their R 1.8 billion loan beyond the 30^thof September 2017;

- The balance of the lenders of the R 6.8 billion due for payment by the 30^th of September 2017 has apparently indicated their reluctance to extend their loans particularly if Myeni remains on the SAA board;

- The international ratings agencies are watching how Gigaba handles the SAA crisis very closely; and

- There is no time left for any special appropriation bill to be passed by Parliament before the 30^th of September 2017.

With Matjila facing an internal audit for doing his job, it’s difficult to have faith in the PIC when the politically connected seek access to the R1.9 trillion of pension money that Matjila manages to further enrich themselves. It’s unethical to use the citizens’ hard-earned pension funds to rescue the failing SAA, once again.

Despite all this, Gigaba is prepared to put the economic future of South Africa, and the 9.3 million unemployed South Africans, at risk in order to comply with the wishes of President Jacob Zuma to keep his close friend Dudu Myeni on the SAA board.

Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 24 September 2017