Mabuza defends SAA bailout, says money will be put to good use

Deputy President David Mabuza  has assured South Africans that government approving the R10.5 billion to bailout South African Airways (SAA) was a necessary move and that the funds will be used wisely.

Mabuza answered questions from MPs in the National Assembly on Thursday, 26 November 2020.

“As we are going to restructure, we hope that the new airline is going to accommodate all the employees. We are giving space for severance packages that will be paid to employees when they want to leave the employ of SAA,” he said.

SAA was placed under business rescue in December 2019 and a business rescue plan was finally approved after months of disagreements and engagements between the stakeholders involved. Finance Minister Tito Mboweni announced that government would approve the money needed to fund the complete restructuring of the airline – much to the dismay of opposition parties in Parliament.

Mabuza: SAA board members to be announced soon

Mabuza has also announced that the new board members for the airline would be announced soon.

“This R10.5 billion is calculated to settle all the creditors, to settle all liabilities and begin a new airline. So, it has been calculated and it will be closely monitored by the department as a shareholder. The board that is going to be appointed soon that will help us monitor the beginning of the new airline,”

Deputy President David Mabuza

Mabuza added that the consolidated expenditure over the next three years shows that there has been no negative decrease on education, health, community and social development.

The Deputy President also said as announced by the President in 2019, the infrastructure fund, which is being managed by the Development Bank of South Africa, continues to compliment government efforts through catalysing private sector investment into public infrastructure.

“Through this fund, there is capacity enhancement of municipality to deliver on water, on energy and social infrastructure projects in a very programmatic manner,” Mabuza said.

“Further complimenting these efforts is the investment in infrastructure office in the Presidency, which contributes to local government stability and consistency in planning, investment, implementation and maintenance of infrastructure in the short, medium and long term”

He has called on the country to join hands and work together to improve our fortunes and the fortunes of people, by supporting government’s efforts of turning around the performance of state-owned enterprises for the better.