Political parties called South African Airways to be sold or closed because it is nothing more than a vanity project to soothe politicians’ ideological egos.
This comes after a letter from Public Enterprises Minister Pravin Gordhan to the struggling state-run airline’s joint business rescue practitioners in which he rejected their request for another R10 billion bailout.
EFF accused Gordhan of “deliberately crashing and sabotaging SAA”.
Gordhan, in his letter to business rescuers, Les Matuson and Siviwe Dongwana, wrote that the government, in particular due to the coronavirus pandemic, cannot provide another lifeline or loan guarantees.
He said the Covid-19 pandemic was depleting national resources as the government sought to mitigate its impact on the economy and the health of its citizens. available resources must work.
It was also reported on Tuesday that the fate of SAA and SA Express, another struggling state entity, would be decided at a cabinet meeting on Wednesday.
By Wednesday afternoon, those decisions had not yet been announced.
Finance Minister Tito Mboweni on Tuesday indicated that the closure of the two airlines is part of the second phase of the government’s economic policy response to the COVID 19 pandemic.
Mzamo Buthelezi, IFP finance spokesman, said on Wednesday that it was time for SAA to be sold.
“The IFP has always believed that the salvation of SAA is simply a vanity project founded on ideological correctness to satisfy politicians.
“It is not based on business and is not financially viable.”
The IFP believes that SAA may be partially privatized. The airline’s employees will become victims of this tragedy, the IFP says.
Alf Lees, DA MP, earlier agreed in a statement that SAA should close its doors to free the taxpayer from the burden of the never-ending lifebuoys.
“The SAA has been a burden on the fiscal for years. Not only did this jeopardize the country’s public finances, but money was taken away that could be used for better service and investment in public infrastructure. ”
EFF spokesperson Vuyani Pambo claimed in a statement on Wednesday that an “arrogant” Gordhan undermined the SAA business rescue process by not working with the business rescue practitioners or complying with the guidelines.
The party reiterated its call for a multi-ministerial review of state entities, “which will prevent Gordhan’s arrogance from collapsing”.