31 January 2020
Saturday, 1 February 2020 marks the 86th anniversary of the South African Airways (SAA). The South African Communist Party (SACP) takes this opportunity to reiterate its support for the turnaround of the national airline, which should have been a state-led proactive process, rather than a reactive business rescue process. Nothing must be taken for granted. For instance, the business recue practitioners do not necessarily have an aviation experience. They are more likely to engage the services of others, if they have not done so already. It remains important to maintain vigilance in this process to safeguard the direly needed turnaround of SAA.
The measures required include holding the business rescue practitioners accountable. The post-commencement finance, meaning the funds granted in business rescue to achieve the desired turnaround, must be used prudently and accounted for up to the last cent. It is in this context that the SACP welcomes the investment announced this week by the Development Bank of Southern Africa (DBSA) into SAA’s turnaround. Other public Development Finance Institutions (DFIs) should follow suit. The working class through its massive industrial funds and public sector funds should also take responsibility, match words with deeds and invest in turning around SAA and other state-owned enterprises.
The SACP calls on the entire state, including government at all levels, to direct its flights budget towards turning around and sustaining SAA as a public airline. This means every person flying on tax payers’ money must be directed to use SAA. Members of the public will take their cue from the government leadership that walks the talk.
The SACP further reiterates its call for a forensic investigation into procurement conduct at SAA. The contracts entered into or tenders awarded by SAA and the extent to which each may have contributed to the crisis it was plunged into must all be scrutinised. No stone must be left unturned, including pricing and the factors that underpin it, to make flying SAA affordable.
The investigation must cover key executive appointments, including but not limited to the appointment of the Chief Restructuring Officer in 2017, interim Chief Financial Officer, SAA Technical Chief Executive Officer, and Chief Commercial Officer, as well as the contracts SAA entered into under their stewardship. SAA was handed over into the hands of these ‘airline turnaround experts’, inclusive several from abroad. It is clear that they have dismally failed – to the extent SAA was plunged into further crisis under their captaincy. There must be accountability on the work they failed to deliver and the value for the money that they were paid while SAA continued to fall deeper into crisis, instead of achieving a turnaround, under their stewardship. The investigation must also include possible conflict of interests, among others.
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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