SAA bailout being questioned by more opposition parties

Reading Time: 2 minutes

The South African Airways (SAA) bailout debacle is now being questioned by other opposition parties in Parliament.

Government still seems intent on bailing out the airline.

This week, some opposition parties joined the Democratic Alliance (DA) in rejecting any attempt to bail out the struggling national carrier.

It’s still not clear where the government intends to get the R10.4 billion bailout from, for SAA.

But some Cabinet ministers are adamant SAA must be saved, almost hinting that it’s just too big to fail.

 SAA Business Rescue Practitioners reach an agreement with government:

Minister of Transport Fikile Mbalula says, “We are trying to make sure that SAA troubles are a thing of the past … working hard to see the SAA package come back to online.”

But other opposition parties have joined the DA in rejecting attempts to save the airline, especially if the money is to come from the already paltry public purse.

United Democratic Movement’s Nqaba Kwankwa, National Freedom Party’s Sheik Imaam, Congress of the People’s Dennis Bloem and DA’s Alf Lees, all totally reject any government efforts to either borrow money or try to adjust the budget again to find the R10.4 billion bailout.

Last week, it was reported that SAA business rescue practitioners have received a letter from Treasury, which stated that the government has agreed to a R10.4 billion state-funded bail-out for the airline.

But as things stand, it is clear that opposition parties will refuse to approve any further adjustments to the budget, especially for an SAA bailout.