More calls to place SAA under business rescue

TRADE union Solidarity

has called for SAA

to be placed under

business rescue in a

letter to President Cyril

Ramaphosa and Ministers

Nhlanhla Nene and Pravin

Gordhan. The union also

confirmed plans to initiate

a court process to achieve

this.

The letter says: “The

dismal state of SAA

is well recorded and

undisputed. The taxpayer

has subsidised SAA

[for] far too long and its

current composition and

model have no reasonable

prospects of generating

any profits, let alone any

growth.”

Solidarity’s proposed

model would be one

in which the State was

no longer the sole

shareholder in SAA.

The union has also

called for an investigation

into those individuals

who were found, in the

Auditor General’s report,

to have committed gross

negligence on the part of

the Board of SAA.

Last month, Alf Less,

DA Shadow Deputy

Minister of Finance, said

his department had been

suggesting business

rescue, but this had

been avoided due to

concerns that banks would

recall multimillion-rand

guarantees should this

occur