The IFP considers the decison by National Treasury to provide an emergency bailout to South African Airways in an attempt to avoid a default in debt repayments as wrong and purely bad business practice in all material respects.
The culture of open ended bailouts being provided to SAA in the absence of change in business behavior is the very reason why this state-owned entity is collapsing.
The IFP believes that National Treasury is ill-advised to continuously in a willy-nilly fashion throw financial solutions to what are essentially non-financial problems at SAA. The fundamental challenge at the heart of the SAA problem is a pure lack of leadership and an absence of strategic direction.
SAA has a rogue culture of reckless spending which is a perpetual drain on the national fiscus.
The IFP is concerned that the prevailing culture of blank cheques will be the very bane of SAA.
The IFP accordingly calls for the disbandment of the current board and the recusal of the current management and for a business rescue intervention process to be set into motion; and amongst other aspects for this process to begin the rationalisation of routes and institute major cuts in the luxurious spending spree culture at the national carrier where wants currently supercede needs.
SAA is a national asset which is fast becoming a national liability.
Contact:
Mkhuleko Hlengwa, MP
IFP Spokesperson for Finance and Public Accounts
071 111 0539
