DA: We’ll legally challenge SAA getting emergency funding

Government confirms it will ‘mobilise’ funding for the airline’s restructure.
Tito Mboweni has been given until the close of business on Thursday to respond. Image: Waldo Swiegers, Bloomberg

With government committing to obtain the requisite R10.3 billion needed to restructure South African Airways (SAA), the Democratic Alliance (DA) says it will legally challenge the use of emergency public funds to do so. 

Minister of Public Enterprises Pravin Gordhan and Finance Minister Tito Mboweni signed a letter confirming that government will commit to “mobilise funding for the short-, medium- and long-term requirements, to create a viable and sustainable new South African national airline”.

The letter was sent to the airline’s rescue practitioners on Wednesday.

In a legal notice sent to Mboweni on Thursday, the DA asked that he confirm that he won’t invoke Section 16 of the Public Finance Management Act (PFMA) to meet this expense.  

Section 16 allows the finance minister to disburse state funds for an “exceptional nature which is currently not provided for and which cannot, without serious prejudice to the public interest, be postponed to a future parliamentary appropriation of funds”.

The DA says the SAA case does not meet any of the provisions of Section 16, as there is no emergency; there is nothing exceptional about the proposed expenditure; and postponing the funding will not seriously prejudice the public interest.

Read the full notice here.

It remains to be seen where they will find the money. It would be totally unacceptable to inject yet another bailout into SAA using public money, or to offer government guarantees for new loans,” said the DA’s Geordin Hill-Lewis in a statement.  

Read: Government commits to funding a restructured SAA

“Even this commitment shows Minister Mboweni has backtracked on his previous stance not to countenance any further support for the bankrupt airline.”

The party says it will “have no choice but to approach the high court for urgent interdictory relief pending a review of your decision” should Section 16 of the PFMA be used to release any money for the purpose of SAA’s restructure. 

Hill-Lewis said that in a similar matter in 2017, parliament obtained a legal decision which found that a R3 billion bailout to SAA authorised by then-finance minister Malusi Gigaba under Section 16 “was likely illegal”.

Mboweni has been given until close of business today (Thursday) to respond.

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Mboweni dealing with his comrades must be thinking “I’m getting too old for this sh!t”.

So the true colours finally emerge….

cANCer an absolute disgrace. I’m ashamed…

A better and more useful plan at this point would have been a strategic plan to save aviation more generally. The government should take a minority stake in all SA domestic airlines which need it to get them going again. Once they are viable, sell the stakes for a profit and repay the taxpayers. South Africa is well served by international airlines or was until COVID. If the government wants to salvage SAA rather privatise it and let someone else – who has run an airline before – deal with getting it working again. Pride is not a good decision maker!

Tito – Useless
Praving – Usless

That is what happens when you have a Communist heading up Public Enterprises.

Remember the wage negotiations at Escom 6 months ago.

But just think what actually happened here..

Afriforum took it to court insisting Liquidation …then to stop the issue going totally legal gubberment took SAA to business rescue….which were for once the correct thing to due .

Now gubberment create saa farce nr:2, so they are effectively showing the finder to Afriforum initial action…
So what should happen is Afriforum challenging it again …going full circle

….Tito will have the last laugh of all …the IMF soft loan the ANC will seek for the Covid (hoax) will sink financing SAA

IMF will ask is Eskom not more deserving of 26billion?

They coming our Pensions.
Which in turn will mean low income for these investments.

So after all the “wheeling and dealing”, after all the “smoke and mirrors” act(s), the government is finally showing the middle finger to the S.A. taxpayers and bailing out SAA once again, this time under the cover of “SAA.02”.
Obviously, the jobs of family and friends at SAA and the decades old feeding trough must be protected at all costs.
I marvel at a government that can throw tens of billions of rands at a dead duck, whilst the poor at Livingston Hospital suffer! See https://www.bbc.com/news/wo
Yet another ANC disgrace.

Arrange your affairs in such a manner that these corrupt apparatchiks get no or as little as possible tax money from you. Every Rand they get they ultimately use against you.

And obviously never use Mango or SAA!

End of comments.

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