NUMSA AND SACCA WILL TAKE LEGAL ACTION TO PREVENT LIQUIDATION OF SAA
5 July 2020
The National Union of Metalworkers of South Africa (NUMSA) and the South African Cabin Crew Association (SACCA) have noted with absolute shock and dismay the recent press statements attributed to Finance Minister Tito Mboweni and the National Treasury Department to the effect that South African Airways (and other State Owned Entities, including SA Express) should be closed down. Mboweni has effectively confirmed that he supports the liquidation of South African Airways (SAA) and SA Express.
Minister Mboweni has been on record making similar reckless statements since 2018, and the most recent position he and his department adopted directly contradicts the official position of Government and more particularly the position of the Department of Public Enterprises, where Minister Gordhan has formally adopted the position that DPE is against the liquidation of SAA. DPE has gone as far as setting up the Leadership Consultative Forum (LCF) emanating from the Compact Agreement, the main purpose of which it to avoid liquidation and to restructure it into a sustainable, profitable and efficient airline.
In fact, this is not the first time that the finance minister makes such comments. Mboweni made his intentions very clear at an investor conference last year, that his wish was that SAA be liquidated and should be given to specific people. We view this as blatant corruption and we wish to be on record that his decision is not only reckless, but well calculated given the timing in order to ensure the liquidation of SAA for his own selfish intentions. The purpose of the statement is intended to undermine any progress to turn around SAA.
The goal is to influence the creditors into voting for liquidation on the 14th of July at the upcoming creditors meeting. Furthermore, Mboweni has contributed to damaging the SAA brand by publicly making this pronouncement.