NEHAWU opposes mooted SAA bailout by PIC
24 August 2017
The National Education Health and Allied Workers’ Union [NEHAWU] is opposed to the R6 billion bailout of the South African Airways [SAA] by the Public Investment Corporation [PIC].
As NEHAWU, we are vehemently opposed to the abuse of employees’ retirement funds to rescue the mismanagement and corruption taking place at SAA. Even government has refused to use state resources to bail out poor performing state-owned companies including SAA and this baffles us as to why then workers’ retirement funds would be used to bail out the flagging airline.
Lack of leadership and political oversight has led to the current financial crisis that SAA finds itself in. No bailout can save the SAA nor will any attempts to throw money at the crisis help alleviate the situation. In July 2017 SAA did receive state funds to help repay debts and also about 20 billion in government guarantees to keep it solvent. Yet, this did not resolve its cash crunch which came about as a result of years of operational losses. The looting and normalisation of profit loss is deeply entrenched and will require strong leadership, prosecutions of those who are lining their pockets and a sound turn-around strategy to save the airline from total collapse.
NEHAWU calls on the Minister of Finance, Malusi Gigaba, not to use workers’ retirement funds to rescue SAA. We also call on the Minister to remove the entire SAA board. In our view the current board is responsible for running the airline into the ground. It is under the boards’ watch that SAA slowly slid into bankruptcy. The board has dismally failed to curb corruption and operational losses. We also call on the Minister to institute an investigation into how the current board contributed to the financial troubles facing the airline. All senior executives involved in the looting of the SAA must be brought to book. A new board with a new mandate is immediately needed to salvage the SAA.
As NEHAWU we will not stand idle while workers hard earned money is used to fund the looting spree currently taking place at SAA. We will be watching the situation closely to monitor if workers money is not used recklessly. In this regard, we want to warn government not to mess-up with its loyal servant’s retirement funds. As NEHAWU we are prepared to mobilise all workers in the public service against such a move by our government.
Issued by Khaya Xaba, Media Liaison Officer, NEHAWU, 24 August 2017
