Mboweni at odds with ANC
The DA notes with great interest the view expressed by the Minister of Finance, Tito Mboweni, while addressing an investor conference in New York yesterday, that South African Airways (SAA) should be “closed down”.
Mboweni’s refreshing views on SAA are in sharp contrast to the repeated mantra by the ANC in Parliament that maintains that the state carrier is a developmental tool that cannot be done away with and which will never be privatised.
This troubled state-owned entity (SOE) continues to be a huge drain on the fiscus. Notably:
SAA recorded losses of R5.6 billion in 2014/15, R1.4 billion in 2015/16, R5.5 billion in 2016/17 and R 5.7 billion in 2017/18, and is running at a loss in 2018/19 with the SAA turn-around plan making provisions for further losses until the 2020/21 financial year;
SAA has been bailed out by the taxpayer to the tune of R10 billion over the past two financial years and is set for a further R21.7 billion in taxpayer bailouts over the next three years; and