SAA rescue bid welcomed
Keeping national carrier in the air is key to avert jobs bloodbath, says deputy minister
DEPUTY Minister of Public Enterprises Phumulo Masualle has insisted that SA Airways (SAA) must be saved to protect thousands of jobs.
He said the unions had also backed the process of business rescue.
His remarks come amid concerns raised by political parties and unions that the “rescue” of the national carrier should not lead to a jobs bloodbath.
Some of the parties said the extent of the financial crisis at SAA would be known after the business rescue practitioner had taken over the running of the airline.
Les Matuson has since been appointed the business rescue practitioner for SAA.
Masualle said yesterday that they met the unions, which had agreed to the process.
“We have had a successful meeting with the labour unions within the fold of SAA. (It was) very difficult initially, but with the explanations given there was a welcoming environment.
“The unions have expressed their support to the business rescue practitioner that has unfolded today (Thursday). They have said they really wished this airline to be saved and will contribute in that and it augurs well for the practitioner to have that welcoming support,” said Masualle.
He emphasised that the jobs would need to be saved at SAA.
The DA, IFP and ACDP said the decision of the government was the best option available. DA MP Alf Lees said a private equity partner was needed. But he added that the business rescue practitioner would be able to unravel the extent of the financial crisis at SAA.
“The financial status of SAA and its subsidiaries is largely unknown given that annual financial statements for the past two financial years have not been published by the SAA board,” said Lees.
He called for the unbundling of SAA and returning it to profit.
However, the SACP argued that the government had to drive the process of rescuing SAA and not leave it in the hands of a business rescue practitioner.
“The SACP is disappointed that SAA was driven into a business rescue situation. Our preference was a stateled turnaround process. We called for a thorough investigation into procurement conduct on all contracts, including airline leasing and fuel contracts, as well as into major appointments, to establish the role these systematically played in plunging SAA into its current crisis.”
The IFP and ACDP indicated that the business rescue was the only viable option for government.
The state has for a number of years been giving bailouts to SAA and other state-owned enterprises. It is thought that the bailouts to SOEs have amounted to more than R570 billion and Finance Minister Tito Mboweni has warned this was coming to an end.
Acting deputy director-general in the Department of Public Enterprises Melanchton Makobe said the days of bailouts were over.
He said the R2bn given to SAA by the Treasury would help to keep it in business while the business rescue practitioner took control of the business.
The practitioner would take decisions in the best interests of SAA and its lenders, said Makobe.