SAA requires Business Rescue, not small talk from Gordhan

26 July 2016

Minister of Finance, Pravin Gordhan’s repeated call for a new SAA board is welcomed, but it is now time for him to stand up to Jacob Zuma and to walk the talk.

To do this, Minister Gordhan must accede to the DA’s call for SAA to be placed under Business Rescue, and he must take action to fire the entire board immediately.

SAA, at the hands of Ms Myeni, has been plagued with major financial problems including assessed losses of R18 billion. Ms Myeni and her dysfunctional board are also in breach of various sections of the Companies Act, particularly with the infamous R256 million appointment of BnP Capital as financiers and the subsequent cancellation thereof alleged to cost SAA R49,9 million for no services rendered.

The DA therefore reiterates the urgency for SAA to be placed under business rescue given the financial disarray into which SAA has sunk. The DA will continue to fight for job creation and economic growth in South Africa. SAA cannot continue to act as a drain on the fiscus with further government guarantees that will steal tax payers’ money away from meaningful service delivery and job opportunities.

Issued by Alf Lees, DA Shadow Deputy Minister of Finance, 26 July 2016