EFF STATEMENT ON THE SAA BAILOUT

Friday, September 29, 2017

The Economic Freedom Fighters notes that Malusi Gigaba has once again invaded the National Revenue Fund, took R3 billion to bail out the badly run South African Airways. The EFF believes that the bailout of SAA when Dudu Miyeni is still its Chairperson and without a comprehensive recovery plan is not only thoughtless but an extremely reckless financial management.

The SAA is in crisis because of the incompetent leadership of Dudu Myeni, who for 8 years has hounded off competent managers from the airplane and replaced them with incompetent sycophants who are dismally failing to bring the airline to stability. SAA under Dudu Myeni has never had stable leadership, which was designed by her handlers so that she illegally interferes with management functions, particularly procurement. 

On many occasions, the EFF has illustrated to the Standing Committee on Finance and Parliament that retaining Dudu Myeni as Chairperson of SAA will only lead to deeper crisis. Despite these many illustrations, submissions and cogent arguments, Malusi Gigaba extended Dudu Myeni's as Chairperson of the Board, despite a 2016 Cabinet resolution that she will only serve for one year, which ended 31st August 2017. 

The EFF knows that Lenders to SAA refused to roll over the loans because they objected to the continued presence of a delinquent director Dudu Myeni as Chairperson of the airline. The Lenders refused to roll over the loan because SAA under Dudu Myeni is still directionless and has no believable recovery plan.

The EFF condemns Malusi Gigaba's reckless management of South Africa's National Revenue Fund and now concerned that he will do to National Treasury what he did to ESKOM and TRANSNET when he was Public Enterprises Minister. Malusi Gigaba remains a loyal stooge of the Guptas and the people of South Africa should stand up against his reckless and thoughtless usage of the National Revenue Fund.

The EFF demands that Dudu Myeni must immediately be removed from SAA Board, and the recently appointed Chief Executive Officer must start. SAA must also finalize the process of appointing the recommended Chief Restructuring Officer, who will work with the CEO to stabilize the airline and bring it to total stability. This has to happen as urgent as possible. 

The EFF will write to Parliament to table an urgent debate and resolution on how best State-Owned Companies should be managed. We cannot allow a Gupta stooge to continue demolishing important State Owned Companies and institutions. 

Statement issued by the Economic Freedom Fighters, 29 September 2017