Treasury accused of failing in oversight of SAA

The accusation comes in response to Treasury's decision to give South African Airways a R2.2 billion bailout for the beleaguered airline to settle its debt with Standard Chartered Bank.

A statement by Treasury on Saturday confirmed funds had been released from the National Revenue Fund to prevent SAA from defaulting on its debt.

But the committee now wants answers from Treasury as to what it will "require  from the SAA Board in return to ensure that it functions far more effectively".

Committee Chairperson Yunus Carrim says they believe it is for this reason that Treasury is failing in its oversight role.

"It is precisely because money is being invested that the oversight responsibility of government becomes far more important," Carrim told Jacarandafm News, "and government has to ensure that SAA is acting according to the compact that it has signed."

The DA's Alf Lees says the bailout will not end the airline's financial woes, with the committee expressing a similar concern.

"We are especially concerned that SAA has been losing R370 million a month at the moment," Carrim is quoted as saying in the statement.

The committee adds it will be far more effective in its oversight of both Treasury and SAA.

The committee is also calling on the airliner to speed-up its turnaround process.

"We reiterate our request that the Board be strengthened with people with the necessary aviation expertise and experience, that the position of the Board Chair be reviewed, and that the SAA CEO be appointed as soon as possible."

The Standing Committee on Finance is set to meet with officials in August.