NUMSA and SACCA are done talking – We want action regarding funding for the BR plan at SAA
19 September 2020
The National Union of Metalworkers of South Africa and the South African (NUMSA) Cabin Crew Association (SACCA) have noted that the Business Rescue Practitioners at South African Airways received a letter from Treasury and the Department of Public Enterprises that government will mobilize funds for the Business Rescue Plan, an amount of R10.3 billion by next week. As a result of the letter the BRPs took the decision yesterday to defer the creditors meeting for another week in order to give DPE and Treasury time to source the funds.
We would not be surprised if the decision to defer the meeting was motivated by the official notice which our attorneys sent to the BRP’s, the office of the Presidency, Parliament, DPE and Treasury. We warned them that if the creditors meeting yesterday had voted for liquidation, we were prepared to launch a High Court application to stop it. NUMSA and SACCA will under no circumstances accept the liquidation of SAA, and for that matter also South African Express, or any other State Owned Entity (SOE).
Just as a Government department or a Municipality cannot be liquidated, NUMSA and SACCA do not accept that a SOE can be liquidated under the artificial guise of these entities being separated into legal entities, despite the fact that government had full control over their demise as a consequence of corruption and mismanagement, and did nothing to stop the rot. We have noted that DPE has said in the statement that SAA will not be liquidated.
We have noted the assurances given by DPE that funding will be made available, but we hope that this time their words will translate into action and that these are not just empty promises. This is not the first time that DPE and Treasury have missed the deadline for funding to be made available for the Business Rescue plan and we hope that this time the money will actually materialize.