The DA will go to court to prevent the state from giving more money to South African Airways (SAA).
DA MP Geordin Hill-Lewis said in a statement on Thursday that the party had already sent a letter to Finance Minister Tito Mboweni informing him that he would take legal action if the state did assist the SAA financially.
This comes after Public Enterprises Minister Mboweni and Pravin Gordhan confirmed the support in a letter to SAA’s business rescuers.
Financial support by the “shareholder” of the SAA was one of the prerequisites of the rescue plan for the airline.
According to the business rescue plan adopted for the airline, an additional R10.1 billion is needed to implement the rescue plan.
A total of 86% of the creditors of the airline approved the plan on Tuesday.
Hill-Lewis says they will make any disbursement of public money that Mboweni under his emergency powers under art. 16 of the Public Finance Management Act, oppose.
“If Mboweni does not confirm that no state money through art. 16 will not be distributed, we will urgently approach the courts to stop him, ”said Hill-Lewis.
He says the DA is wondering where the minister will get the money to help the airline.
“It would be completely unacceptable to give SAA another lifeline, or to offer government guarantees for new loans.
“Even this commitment shows that Minister Mboweni has reversed his previous position that he will not provide further support to the bankrupt airline.”
Hill-Lewis says if Mboweni is now persuaded by the ANC to pay out a lifeline to SAA, “he will have to carefully reconsider his position in the government”.