Row over pumping more money into ailing SAA

A ROW has erupted in Parliament over a leaked document on the recapitalisation of SAA to the tune of R10 billion after ministers clashed with opposition parties.

ANC ministers this week defended the decision to rescue SAA, saying they would not allow it to go under.

However, they accused the opposition of stealing the document and having no right to talk about it.

Tourism Minister Tokozile Xasa and Rural Development and Land Reform Minister Gugile Nkwinti accused the DA of being desperate in taking a cabinet document to score political points.

They insisted SAA would not be sold and the government would ensure it continued to operate.

SAA is in a financial crisis and in need of billions to staveoff any threat of grinding to a halt.

Xasa told the DA to allow the government to work with state-owned entities and it would report back when it was time to do so.

Nkwinti also lashed out at the official opposition, saying it had obtained the cabinet memorandum unlawfully.

He said this showed how desperate the DA was.

Nkwinti said that when they discussed the document in the cabinet there was no decision to take a cent from Telkom.

He said Telkom contributed R500 million to the fiscus.

SAA has been the subject of intense discussion in Parliament and outside over the financial crisis.

Matters came to a head when DA member Alf Lees presented the document in Parliament where he said it had been discussed in cabinet this week.

The document proposed the recapitalisation of SAA by R10bn through the sale of the government’s stake in Telkom.

But Scopa chairman Themba Godi warned against this, saying Telkom was an important state asset that could not be sold.

“We accept that government can sell Telkom shares. We lost Vodacom shares.

“What that means is that the stake in the state economy shrinks.

“Telkom is a strategic business that you cannot allow to be in complete private hands,” said Godi.

The government sold its stake in Vodacom in 2015 for R23bn to fund Eskom.

And in addition to that, converted its Eskom loan of R60bn to equity.

This was aimed at strengthening the balance sheet of Eskom.