Sunday Times

SAA survives — so do pit toilets

Funds for failing airline diverted from social programmes

- By CAIPHUS KGOSANA

The R10.5bn being spent to save SA Airways will be diverted from funds initially earmarked for pressing needs such as libraries and laboratori­es for schools, better health-care facilities, housing, farm support and eradicatin­g pit toilets.

Social pressure groups are fuming over the diversion of funds, but the National Union of Metalworke­rs of SA (Numsa) — which represents airline staff — accused finance minister Tito Mboweni of “mischievou­sly and recklessly” misleading the public about where the money is coming from.

Mboweni unveiled the spending plan in his medium-term budget policy statement on Wednesday, when he tabled several bills, including the division of revenue second amendment bill.

An explanator­y memorandum describes how provincial and local government allocation­s will be adjusted to make money available for the SAA business rescue process, which includes severance packages for retrenched employees of the national carrier.

The documents spell out cuts totalling R1.3bn in provincial conditiona­l grants, including: R336m from the school infrastruc­ture backlogs grant; R273m from the provincial emergency housing grant; R240m from the national health insurance indirect grant; R224m from the HIV, TB, malaria and community outreach grant; R52m from the health facility revitalisa­tion grant; R14m from the community libraries services grant; and R14m from the comprehens­ive agricultur­al support programme grant.

The Treasury has also cut R613mfroml­ocal government conditiona­l grants. These include transport network grants and grants that are critical formaintai­ning water infrastruc­ture.

Julia Chaskalson, spokespers­on for the public-interest law centre Section27, said the reductions to school infrastruc­ture grants were particular­ly devastatin­g given the serious backlogs her organisati­on and others such as Equal Education have found, especially at rural schools.

She said that when Mboweni announced a R2bn reduction in the education infrastruc­ture grant in his supplement­ary budget in June, redirectin­g that money towards Covid relief efforts, 1,390 school infrastruc­ture projects had to be scrapped or delayed.

These included eradicatin­g pit toilets at 4,000 schools, building more classrooms to deal with overcrowdi­ng, and the provision of libraries and laboratori­es at schools that still

do not have such facilities.

Chaskalson said: “We are saying there are other alternativ­e ways to raise revenue without risking or jeopardisi­ng human rights.”

Section27 and other organisati­ons under the Budget Justice Coalition will start lobbying parliament from tomorrow to get the spending cuts reversed in the main budget in February next year.

“Government has to carefully consider cutbacks on education and basic nutrition.

These are unqualifie­d rights, you can’t use lack of planning as an excuse to deny the fulfilment of those rights,” Chaskalson said.

Phakamile Hlubi-Majola, spokespers­on for Numsa, accused Mboweni of falsely creating the impression that the SAA rescue was being funded at the expense of social spending priorities.

“That he has mischievou­sly and deliberate­ly couched the presentati­on of the budget to mislead the public and create the impression that other department­s had to be sacrificed to save SAA is actually very disingenuo­us, very reckless, very irresponsi­ble and nothing more than an attempt to divide the working class and mislead the public,” Hlubi-Majola said.

She said SAA employees had borne the brunt of the airline’s financial crisis.

“This R10.5bn has come at great cost. For the last five months, workers at SAA have been without any kind of salary while the business rescue practition­ers have been earning very generous packages.

“Second, 2,000 workers have had to be retrenched in order for this airline to be restructur­ed,” Hlubi-Majola said.

SACP spokespers­on Alex Mashilo said the party supported efforts to rescue and restructur­e SAA, but it was opposed to a budget premised on austerity.

“These reductions from one grant to another, from one function to another, revolve around austerity. We have very strong views against austerity because it will impact negatively on growth,” he said.

National Treasury director-general Dondo Mogajane said the funding of SAA was a cabinet decision.

“The cabinet obviously would have applied its mind in weighing the options, also in terms of deciding where the money must come from,” he said.

“When that decision is made, it’s neither here nor there for me to say if it’s justified or not. All those expenditur­e items are critical.”

[It is] an attempt to divide the working class and mislead the public

 ?? Picture: ESA ALEXANDER ?? Finance minister Tito Mboweni unveiled the controvers­ial plan to save SAA during his medium-term budget policy speech this week.
Picture: ESA ALEXANDER Finance minister Tito Mboweni unveiled the controvers­ial plan to save SAA during his medium-term budget policy speech this week.

Newspapers in English

Newspapers from South Africa