Some opposition parties in Parliament have criticised Finance Minister Tito Mboweni for allocating R10,5 billion to South African Airways (SAA) while public workers and representatives are expected to take pay cuts.
Mboweni delivered the Medium-Term Budget Policy Statement and has allocated the airline the extra cash to implement its business rescue plan.
United Democratic Movement (UDM) Chief Whip Nqabayomzi Kwankwa says this year’s mini-budget is a confirmation that priorities are skewed and things are falling apart with the ANC government.
“Well, this is a confirmation that the country is broke, that the ANC has spent all the past 10 years wasting all the state resources turning a blind eye to corruption. For example how do you explain that you are asking public representatives and civil servants including pub representatives to take pay cuts but at the same time bailing out SAA.”
The Democratic Alliance (DA) has expressed disappointment with Mboweni’s Medium-Term Budget Policy Statement. The party says Mboweni has broken two commitments he made earlier about not bailing out SAA and controlling escalating debt.
DA spokesperson on Finance Geordin Hill-Lewis says Mboweni previously said SAA will not be allocated funding from the national fiscus – but the ANC minister has now reneged on that undertaking and has allocated the national carrier over R10 billion.
The Inkatha Freedom Party (IFP) says Mboweni failed to announce a private equity partner for the financially struggling SAA. The party says SAA should not be funded through the national fiscus because this has failed in the past to deliver a successful self-funding airline.
IFP spokesperson on Finance, Nkosi Mzamo Buthelezi says, “The funding that is given to SAA, we were hoping that the Minister will speak in terms of bringing a private partner in terms of funding SAA. Every minute money has been pumped to SOEs but they don’t give results intended for.”
Minister Tito Mboweni delivers the Medium-Term Budget:
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