Set to trigger the retrenchment of about 3 000 staff, the airline is undergoing a major face lift. It’s likely to return to service under a different name, with a completely new management team and operating style. This will cost about R16 billion for the total restructuring programme and the funds will have to come from the state.
With the shortcomings of the Eskom, the Public Investment Corporation (PIC) is seen as an alternative for the government. According to Mboweni’s commitment under oath, this will be carried out by investing the money collected in public pensions into SAA. Their multi-billion rand bailout would bypass any ’emergency’ funding and see the national carrier complete its metamorphosis.
Geordin Hill-Lewis, who is the shadow finance minister, has welcomed one of Mboweni’s decisions but he’s keeping a close eye on his opposite number:
“On the basis of Mboweni’s commitment under oath, we are satisfied that there is no need for an urgent hearing, although we remain on high alert for other illegitimate attempts to fund SAA.”
“The DA has achieved its immediate goal of preventing this bailout from happening secretly, behind the scenes. We have now removed our application from the urgent court roll. The DA is resolute that it would be wrong for SAA to be bailed out once again, at public expense, while millions of people face such hardship.”
“But Mboweni’s affidavit, filed in response to our court challenge, raises new alarms about how the airline might be bailed out using other means. Most worryingly, he suggests using pension funds to ‘invest’ in SAA, which raises the prospect of the Public Investment Corporation being forced to give money to a state carrier.” Geordin Hill-Lewis said.
But Mboweni said the bailout Geordin talked about is not real.
