Ramaphosa clarifies SAA R10bn bailout
DEPUTY President Cyril Ramaphosa defended the R10 billion bailout of SAA and insisted in Parliament yesterday the airline will not be sold.
He said the privatisation of SAA was not on the agenda of government, but they will bring in an equity partner who will return it to profit.
He said he was hopeful SAA will turn the corner after it has been revitalised by the appointment of a new board.
However, Ramaphosa told the National Council of Provinces that had the government not given SAA the bailout of R10bn it would have caused cross-defaults in all stateowned entities.
He said the government would not have been able to pay for the guarantees worth R830bn for all SOEs.
Ramaphosa was answering questions in the NCOP when he was questioned on SAA and other entities.
“SAA is a state enterprise and there is no running away from that because it is a state enterprise.
“We’ll have to do everything to revitalise it. We have not Deputy President Cyril Ramaphosa defended the R10 billion bailout of SAA.
resolved to sell off SAA.
“It is a state owned enterprise. We will assist SAA with the funding it requires with a view that it is revitalised,” he said.
He said they want the new board to return the airline to profit.
Ramaphosa said once an equity partner has come in they will help in returning the
national carrier to profit.
He said the bailout was necessary to avoid a cross-default on loans by other SOEs.
“If the government were to fold its arms and allow SAA to fail it would be a catastrophe.
“If SAA were to default, that default would run across state entities.
“SA Inc would then be at great risk when they call in the loans. It would run across entities. Then at one go we will be expected to pay up.
“That will have an impact on our bonds and our creditworthiness,” said Ramaphosa.
Ramaphosa also called on parties in Parliament to be patient until the courts have pronounced on the appointment of a commission of inquiry into state capture.
He said President Jacob Zuma has filed his supplementary papers in the North Gauteng High Court.
However, in his papers Zuma now wants to appoint a commission of inquiry on his own terms.
This is contrary to the findings of then public protector Thuli Madonsela that Chief Justice Mogoeng Mogoeng must appoint a judge to lead an inquiry.
But Ramaphosa said the matter was still in court and a decision will be made soon.
He said Zuma had no problem in appointing a commission of inquiry.
Parties in Parliament have for months been calling for Zuma to appoint the commission of inquiry into state capture.