Mabuza: SAA won’t take money away from health, education
Deputy President David Mabuza has promised that the latest funding provided to South African Airways won’t affect health or education spending.
Government recently provided another R10.5 billion to the struggling flag carrier to conclude its business rescue process.
This has led to criticism from some quarters given government’s tight financial situation and the way that the Covid-19 pandemic has already led to the cutting of budgets.
Answering questions in the National Assembly on Thursday, Mabuza vowed that the money would be put to good use.
“As we are going to restructure, we hope that the new airline is going to accommodate all the employees. We are giving space for severance packages that will be paid to employees when they want to leave the employ of SAA.
“This R10.5 billion is calculated to settle all the creditors, to settle all liabilities and begin a new airline. So, it has been calculated and it will be closely monitored by the department as a shareholder. the board that is going to be appointed soon that will help us monitor the beginning of the new airline.”
Mabuza added that the Presidential State-Owned Enterprises Council, which was appointed by President Cyril Ramaphosa in June, will restore the credibility of state-owned entities.
“We re-prioritised, firstly, some of the money into Covid-19 and we also re-prioritised some of the money to deal with SAA. We still feel that SAA is important in this country and we need this airline. It is a decision that we took that we need this airline for tourism and growth.
‘We are aware of mismanagement from the past and I am happy that the president has appointed the SOE council that has begun to do some work in terms of strengthening our SOE’s.”
