‘SAA’…DON’TPAY
OUTA wants to stop R2.7bn of SAA money going to subsidiaries
JOHANNESBURG - The Organisation Undoing Tax Abuse wants to prevent the allocation of R2.7 billion of the R10.5 billion allocated to South African Airways in the mini-budget last year, from going to the state- owned airline’s subsidiaries.
It has made submissions to Treasury, the Department of Public Enterprises (DPE) and SAA, and plans to make a for- mal objection to Parliament’s Standing Committee of Appropriations (SCOA) this week, it said on Tuesday.
The funding is urgently re- quired for restructuring the subsidiaries to align them with the reduced business en- vironment due to the impact of the pandemic, and to settle unpaid salaries and creditors.
But unlike SAA, its subsid- iaries Mango, SAA Technical (SAAT) and AirChefs did not go into business rescue. SAA exited business rescue at the end of April. The remaining amounts to be paid in terms of its rescue plan will be done via a so-called receivership.
“We want these funds to be withheld until submis- sions made to Parliament and SCOA have been heard, considered and decided on in Parliament,” OUTA chair Wayne Duvenage said in a statement on Tuesday.
OUTA has written to Public Enterprises Minister Pravin Gordhan as well as Treasury director-general Dondo Mogajane, the chair- person of the SAA Interim
Board Geoffrey Qhena, and the receivers of SAA, Siviwe Dongana and Bongani Nkasana, with a formal re- quest, and raising its concerns.
OUTA will be submitting its objection to SCOA this week, explaining why the diversion of the R2.7 billion is “unjusti- fied and flawed” in relation to SAA’s business rescue plan.
Members of SCOA last week expressed concerns about whether R2.7 billion will be enough to keep the subsidiar- ies of SAA going or whether Parliament will be asked for more money in future. The committee was briefed by representatives of SAA and its shareholder, the DPE.
The committee is busy with the process of finalising the special appropriation of the
R2.7 billion. It would be R1.6 billion for SAAT, R819 million for Mango Airlines and R218 million for Air Chefs. – FIN24.