Business rescue practitioners called to appear before MPs over SAA

Business rescue practitioners called to appear before MPs over SAA

Cape Town - The public enterprises committee has confirmed it will invite business rescue practitioners to appear before Parliament on the current crisis at South African Airways (SAA).

Chairperson of the committee Khaya Magaxa said on Wednesday that they wanted an explanation on what was happening at the cash-strapped airline.

“The committee will meet to discuss and develop an approach which will include engagements with different stakeholders within the sector in order to address and tackle the challenges that SAA faces,” said Magaxa.

The national carrier has cancelled several flights this week to save money.

SAA spokesperson Tlali Tlali said on Tuesday that the airline opted to cancel the flights in order to preserve its cash.

It needs R2 billion in operational costs and the government has promised to inject the cash.

Also on Tuesday the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) said Treasury should have availed the R2bn once a decision was announced in December to put the airline under business rescue.

“Their failure to do so is at best is an example of gross negligence. We have consistently said that both these ministers are not committed to saving SAA and make it viable,” they said referring to the Minister of Finance Tito Mboweni and the Minister of Public Enterprises Pravin Gordhan respectively.

Numsa and Sacca said the government’s refusal to avail the money to help the airline was an attempt to collapse the embattled airline.

Political Bureau