23 January 2019
The South African Communist Party (SACP) calls upon the National Treasury to fulfil the financial commitment made by government towards rescuing SAA. The National Treasury is yet to pay the R2 billion (‘post-commencement funding’) that government has committed towards the process in December 2019. This has become part of the problems. If the National Treasury attitude continues and also impacts on any additional support that may be required going forward, it will further compound the situation at SAA.
The SACP reiterates its call for SAA to be turned around to thrive and to be maintained as a state-owned enterprise on behalf of the people. Government must adopt a comprehensive aviation industrial policy and reposition SAA to serve as the mainstay of our aviation industry with thriving domestic and international flight routes and cargo operations.
As part of its rescue plan, which should have been a proactive state-led process, procurement conduct and every contract entered into and tender awarded by SAA must be thoroughly scrutinised through a forensic investigation process. No stone must be left unturned. The scope of the investigation must therefore include the relationship between SAA and SA Airlink and the extent to which SAA is being compromised while SA Airlink consequently thrives. The contribution that outsourcing and its exploitation have made towards plunging SAA into crisis must be investigated, along with value for money, irregularities, fruitless and wasteful expenditure.
Key executive appointments, including but not limited to Chief Restructuring Officer appointed in 2017, interim Chief Financial Officer, SAA Technical Chief Executive Officer, and Chief Commercial Officer, must also be investigated. SAA was handed over into the hands of these ‘airline turnaround experts’ inclusive of several from abroad who have evidently failed. There must be accountability on the work of these ‘airline turnaround experts’ and value for the money that they were paid while SAA continued to fall deeper into crisis instead of achieving a turnaround. The investigation must also include possible conflict of interests.
SACP’s response to the National Treasury’s ‘... economic Strategy for South Africa’: https://www.sacp.org.za/sites/default/files/documents/SACP-response-to-the-National-Treasury-paper-released-in-August-2019.pdf
ISSUED BY THE SOUTH AFRICAN COMMUNIST PARTY (SACP)
Dr Alex Mohubetswane Mashilo
Central Committee Member and Spokesperson
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