Opposition outcry over bailout to broke SAA

JOHANNESBURG, (CAJ News) – THE opposition Democratic Alliance (DA) is against the government R3 billion (US$222,8 million) bailout for the embattled South African Airways (SAA).
Government on Friday confirmed it had approved the transfer of funds from the National Revenue Fund to SAA to allow the airline to address its debt obligations to Citibank, thereby avoiding a default.
This reportedly brings the SAA bailout for the year to R5,2 billion.
The DA said it was “disappointed but not surprised.”
“Whilst the latest lifeboat will keep the wolves at bay, it will not deal decisively with the funding crisis at SAA, as the airline is currently incurring R350 million in losses every month,” said DA’s Alf Lees, Shadow Deputy Minister of Finance.
“This massive and wasteful bailout will take even more money away from rescuing the economy for the 9.3 million unemployed South Africans.”
Lees said Friday’s post cabinet statement was “dead silent” on the airline and mentioned no solutions to the crisis.
The opposition urged Finance Minister, Malusi Gigaba, to take full responsibility, be transparent and decisive over the issues plaguing the airline.
A cabinet statement on Friday pointed out the airline remained “a strategic asset and in its role as the flag carrier, it serves as an economic enabler with direct and indirect benefits across a wide range of economic activity.”
CAJ News

Short URL: http://cajnewsafrica.com/?p=22873

Posted by on Sep 29 2017. Filed under Africa & World, Featured, Finance, National, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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