We’ll revitalise SAA, says Cyril

DEPUTY President Cyril Ramaphosa has 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 government’s agenda, but that they would 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 (NCOP) that had the government not given SAA the bailout of R10bn, it would have caused cross-defaults in all the state-owned entities.

He said the government would not have been able to pay for the guarantees worth R830bn for all the SOEs.

Ramaphosa was answering questions in the NCOP when he was questioned on SAA and other entities.

He said SAA would turn the corner and the government would not privatise it.

“SAA is a state enterprise and there is no running away from it. We’ll have to do everything to revitalise it.

“We have not resolved to sell off SAA. We will assist it with the funding it requires with a view to revitalising SAA,” he said.

Ramaphosa said they want the new board to return the airline to profit.

He added that once an equity partner has come on board, they would work towards making the national carrier profitable.

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 on the loans. Then in one go, we will be expected to pay up. That will have an impact on our bonds and our creditworthiness,” Ramaphosa pointed out.

He also called on all the parties in Parliament to be patient until the courts had pronounced on the appointment of a commission of inquiry into state capture.

He said President Jacob Zuma had filed his supplementary papers in the Pretoria High Court.

Equity partner sought to make it profitable

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 appoint a judge to lead such an inquiry.

But Ramaphosa said the matter was still in court and a decision would be made soon.

He said Zuma had no problem in appointing a commission of inquiry.

Opposition parties in Parliament have for months been calling for Zuma to appoint the commission of inquiry into state capture.