The Organisation Undoing Tax Abuse (Outa) says an urgent plan, other than bailouts, is needed to rescue state-owned enterprises.
Outa was making a presentation to a joint meeting of Parliament’s committees that deal with finances.
This after three insurance companies stopped covering tickets issued by South African Airways (SAA) against insolvency.
The decision of Australian travel agency Flight Centre Travel Group’s preferred insurer Santam’s Travel Insurance Consultants, Hollard Travel Insurance and Bryte Insurance in South Africa further clouds the outlook of the struggling airline.
Outa Chief Financial Officer Godfrey Gulson says they reject the injection of capital into SAA, South African Express Airways and Denel without these parastatals undergoing significant changes.
“Partial privatisation is a necessary concept which will inject much-needed funding in SOEs so that is a concept that should be explored going forward,” says Gulson.