The Democratic Alliance (DA) has filed for an urgent interdict in the High Court in Pretoria to stop government from bailing out the South African Airways. The party wants the airline liquidated.
Government sent a letter on Wednesday to the SAA Business Rescue Practitioners, committing to support and source funding for the airline’s new business rescue plan.
In a statement, the DA says: “Our application seeks to interdict the use of Section 16 of the Public Finance Management Act (PFMA), which gives Finance Minister Tito Mboweni “emergency” powers to spend money not budgeted for in “exceptional” and “unforeseen” circumstances. Yet another public bailout of SAA does not meet the definition of an unforeseen emergency. To use this as a pretext to bail out SAA again would be unlawful.”
Full statement below:
SAA Business Rescue Plan approved
SAA went under business rescue in December after years of financial bleeding.
Its rescue plan will require government or a strategic equity partner to provide an additional R16.3 billion in funding.
The airline’s acting COO Philip Saunders has been appointed the acting interim CEO and a new interim board is expected to be appointed in the coming weeks.
In the video below, revised SAA Business Rescue Plan’s approval welcomed:
Victory for workers
The National Union of Metal Workers (Numsa) and the Cabin Crew Association (Sacca) have hailed the new era at SAA as a victory for workers. They say they are relieved that the national carrier was saved from total collapse.
However, they are not convinced that Saunders should be the one steering the airline into a new direction.
The unions say they hope the restructured SAA will have a complete break with the past, especially with regard to dodgy, politically connected management and executives.
In the video below, unions are happy for securing jobs for more workers at SAA: