The Democratic Alliance (DA) applauds the press release by the DA Member of the Standing Committee on Public Accounts, Alf Lees MP, which charts a potential strategy for South African Airways amidst the Business Rescue process.
In line with this, we welcome the belated move by President Ramaphosa to place SAA under Business Rescue – better late than never!
The DA believes this will, however, herald an upcoming battle with the unions which speaks to a central issue that bedevils all public enterprises. Under SAA’s Business Rescue, this nettle will have to be grasped and we hope that in doing so, the way will be paved for further interventions with other State Owned Enterprises (SOEs.)
The bankrupt state-owned diamond mining entity, Alexkor, needs to be next in line because it has for far too long been in a state of chaos, due to mismanagement and corruption which the ANC government has knowingly turned a blind eye. The labour issues in Eskom and Transnet also require concomitant action.
The drain on the fiscus by numerous SOE’s must be addressed and it cannot be over-emphasised that the decision to place SAA under business rescue needs to herald a desirable and overdue approach that must be extended to all SOE’s that add to the momentum driving South Africa Inc. over the fiscal cliff.
SAA’s financial woes, like many other SOE’s, has imperilled our economy. We are pleased that National Government has put its pride aside, to do the right thing, albeit that this course of action, championed by the DA, was only effected at the eleventh hour.
We hope that ANC government will take a stand against its alliance partner and stick to making tough decisions that are in the best interest of South Africa and the economy – without fear nor favour.