https://newsletter.po.creamermedia.com
Deepening Democracy through Access to Information
Home / News / All News RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Article Enquiry

Parliament looks into legality of bailout to SAA


Close

Parliament looks into legality of bailout to SAA

Should you have feedback on this article, please complete the fields below.

Please indicate if your feedback is in the form of a letter to the editor that you wish to have published. If so, please be aware that we require that you keep your feedback to below 300 words and we will consider its publication online or in Creamer Media’s print publications, at Creamer Media’s discretion.

We also welcome factual corrections and tip-offs and will protect the identity of our sources, please indicate if this is your wish in your feedback below.


Close

Embed Video

Parliament looks into legality of bailout to SAA

Parliament looks into legality of bailout to SAA

4th October 2017

By: African News Agency

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Parliament’s standing committee on finance on Tuesday asked for advice on the legality of National Treasury’s R3 billion bailout to South African Airways (SAA) after the opposition submitted a letter claiming it was in breach of public finance rules.

Alf Lees, the deputy finance spokesman for the Democratic Alliance, wrote that it was patently clear to Finance Minister Malusi Gigaba as early as August 24, that the loss-making airline would need R1.8 billion by the end of September to repay its loan to Citibank. Therefore, he had ample time to approach Parliament with a special appropriation bill but opted not to do so.

Advertisement

“I believe that they had enough time to use the normal appropriation process. By not acting timeously they either deliberately or delinquently by-passed Parliament,” he said.

Gigaba last week announced that government had taken money from the National Revenue Fund to prevent a default by SAA.

Advertisement

Lees argued that under the circumstances, it was not regular to resort to section 16 of the Public Finance Management Act (PFMA).

“It is our contention that section 16 of the PFMA may not have been intended to be used under circumstances where the requirement for funds was foreseen and where the normal provisions for the appropriation of funds could be used in order to seek the approval of parliament in advance of the payment to SAA”.

The chairman of the standing committee on finance, Yunus Carrim, asked parliamentary legal advisor Frank Jenkins to report to the committee on Thursday as to whether his office considered the lifeline legal.

Jenkins on Tuesday told the committee that Gigaba’s decision to extend the term of SAA chairwoman Dudu Myeni was legal but only for six months beyond August, when the airline’s annual general meeting was supposed to take place.

“The AGM is the critical moment,” he said.

Lees said Myeni had said in a radio interview that she believed her term had been extended until August 2018. The extension of her contract has become an increasingly fraught subject as SAA’s debtors as it is reported to have contributed to debtors’ reluctance to extend the terms of their loans to the airline.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE      FEEDBACK

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here


About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options

Email Registration Success

Thank you, you have successfully subscribed to one or more of Creamer Media’s email newsletters. You should start receiving the email newsletters in due course.

Our email newsletters may land in your junk or spam folder. To prevent this, kindly add newsletters@creamermedia.co.za to your address book or safe sender list. If you experience any issues with the receipt of our email newsletters, please email subscriptions@creamermedia.co.za