SAA will not be privatised‚ says cabinet

19 October 2017 - 16:50 By Sipho Mabena
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Mmamoloko Kubayi. File photo.
Mmamoloko Kubayi. File photo.
Image: Trevor Samson

Cabinet is not ready to cut its losses with the embattled South African Airways‚ with Communications Minister Mmamoloko Kubayi saying cabinet was not considering privatising the national airliner.

“We do not think right now we should cut our losses as government with SAA. That is why we are doing our best to turn the situation around‚” she said.

Briefing journalists in Pretoria on Thursday following the cabinet meeting‚ Kubayi said cabinet did not discuss Dudu Myeni’s tenure as the board chairperson of the ailing SAA.

She said cabinet did not‚ whenever someone was leaving‚ start reflecting on their tenure as this would be a distraction from real issues.

“We looked at issues‚ we do not look at people‚ we look at issues about the state entity because otherwise we will be distracted‚” she said.

Accouncing the changes to the SAA board‚ Finance Minister Malusi Gigaba on Thursday said Johannes Bhekumuzi Magwaza would replace Myeni as chairperson.

The Organisation Undoing Tax Abuse (Outa) welcomed Myeni’s departure‚ charging that she was at the core of SAA’s problems.

The organisation said since her appointment as chair in 2008‚ government had bailed out the national carrier to the tune of a staggering R23.8-billion. “This year alone‚ SAA received R2.2-billion to repay Citibank. Gigaba has announced that a further R3-billion will be made available from the fiscus for SAA‚” Rudie Heyneke‚ Outa’s portfolio manager for transport‚ said.

He said Myeni‚ who is said to be President Jacob Zuma's ally‚ had no ability as a director and should not be on any board.

In March the organisation issued a summons against Myeni to have her declared a delinquent director. Outa said this court action was still ongoing and was at an advanced stage despite Myeni's departure.

“If Myeni is declared a delinquent director‚ she will not be able to act as a director or serve on any board in any company for up to seven years. Such a sanction will send a message to the government that competent‚ skilled and experienced individuals should be appointed to lead our state-owned enterprises‚” Heyneke said.

The DA‚ meanwhile‚ took issue with the date the changes to the board would take effect - November 3‚ at which date the minister would have a special meeting with the new board.

"This effectively means that the removal of Dudu Myeni and other changes to the SAA board will only be effective from November 3‚ 2017 and that Myeni remains as the chair of the SAA board for another 14 days‚" DA's deputy shadow finance minister‚ Alf Lees‚ said.

He added that Gigaba seemed to think that by removing Myeni‚ that SAA would be saved.

"This is not the case. The airline is bankrupt and requires R10-billion to continue to limp along. It is time to face up to the fact that SAA can only be saved if it is put into business rescue‚ stabilised and sold‚" Lees said.

- SowetanLIVE

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