Democratic Alliance (DA) has referred controversy whether to safe or shut down loss making South African Airways (SAA) to Parliament.
While Finance Minister Tito Mboweni has called for the government to ground the airline, saying “[SAA] is in a loss-making situation and it is unlikely it will sort the problem out so we need to shut it down.”
Public Enterprise Minister Pravin Gordhan said the government can safe national carrier out of its financial woes.
Gordhan said the government must prop SAA up by citizen bailouts to balance out the weak carrier.
“We will put in competent boards, we going to put in the right managers who work and don’t just claim to be managers. They must know enough about the business to turn it around,” said Gordhan.
The Democratic Alliance (DA) said it has submitted an urgent question for an oral reply by Gordhan on Government’s plans regarding shutting down the airline.
DA said SAA continues to run at a loss and has repeatedly failed to implement turnaround plans, at the expense of the South African taxpayer.
DA Shadow Deputy Minister of Finance Alf Lees said Gordhan is due to reply to oral questions in Parliament on [Wednesday] November 14, 2018 and must use this opportunity to address the confusion surrounding the future of the ailing national carrier.
“There is a lack of communications between the two Ministers on the vital issue of closing down SAA to save the R21.7 billion in taxpayer bailouts that the airline requires keeping operational,” said Lees.
He said confusion that must currently reign among SAA providers who supply the bankrupt company and the staff should now be impressive