Mboweni ‘treading lightly’ around issue of SAA
Finance Minister Tito Mboweni says he’s treading lightly around the issue if South African Airways (SAA).
Finance Minister Tito Mboweni says he’s treading lightly around the issue of South African Airways (SAA).
Mboweni and other ministers in the economic cluster faced a barrage of questions at the National Assembly on Wednesday.
Mboweni again defended National Treasury’s decision to give SAA a handout of R10.5 billion as part of government’s business rescue process.
He told Members of Parliament that the cash injection is not a bailout, but a lifeline.
“The issue about South African Airways is a very difficult one, both politically and financially and we have sought to approach them in a balanced way. I refuse the argument that the R10.5 billion that has been allocated in the second appropriations adjustment bill is a bailout, it’s not a bailout,” he said.
“If you go into the components of the R10.5 billion, you’ll notice that this is meant for the business rescue practioners plan for the restructured airline. It’s not the same old South African Airways, it’s not a bailout at all.”
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Mboweni reiterated calls to strengthen the other state-owned enterprises as well.
“Unless we do something different with them, we have an obligation to ensure that they keep running but then do not suck public finances that are there son in my view we do need a thorough conversation about the restructuring of the state-owned enterprises.”
He added: “Keep those which are functional and get rid of those which are not functional because they can be a drain on the economy.”
The national carrier was placed under business rescue last December and its business rescue practioners have been under pressure to wind it up, liquidate or find alternative funding.
