Minister Gigaba remains clueless

Dear Editor

Chaos continues to reign at SAA. Yesterday, Finance Minister, Malusi Gigaba, reportedly told journalists that he had made the appointment of a CEO, which seems to have been a condition of the R 2,207 billion bailout paid to SAA for the national carrier to settle its debt with Standard Chartered Bank.

However, just yesterday Minister Gigaba replied to a written parliamentary question wherein he informed me that the top three candidates for the CEO position would be presented to National Treasury by the 26th of May 2017. A whole month has passed since the 26th of May 2017 and the Minister, if his public comments made yesterday are to go by, still has no idea when a CEO for SAA will be appointed.

A whole month has passed since the 26th of May 2017 and the Minister, if his public comments made yesterday are to go by, still has no idea when a CEO for SAA will be appointed.

Minister Gigaba seems to think that placing such an apparently open-ended condition on SAA is somehow going to galvanise the SAA board to actually address this vital appointment, bearing in mind that SAA has not had a permanent CEO since September 2015.

The same condition was placed on the R4.7 billion guarantee issued to SAA by National Treasury in September 2016.The then Minister of Finance, Pravin Gordhan, assured Parliament that the appointment would be made by the end of March 2017. Now, at the end of June 2017 the new Minister of Finance, Malusi Gigaba, seems to have no idea when the appointment will be made and seems to think that his responsibility ends with the imposition of yet another condition on a payment that has already been made. Conditions that are supposed to be met after the funds have been paid out are toothless and are not conditions at all.

The then Minister of Finance, Pravin Gordhan, assured Parliament that the appointment would be made by the end of March 2017. Now, at the end of June 2017 the new Minister of Finance, Malusi Gigaba, seems to have no idea when the appointment will be made and seems to think that his responsibility ends with the imposition of yet another condition on a payment that has already been made. Conditions that are supposed to be met after the funds have been paid out are toothless and are not conditions at all.

Malusi Gigaba has no more room to manoeuvre, he must now take robust action to stop the massive monthly losses that are running at R 370,0 million per month. As such, I will write to the Minister to request that the conditions for this recent bailout are made public to improve accountability. The DA continues to maintain that the only sure way that he can take robust action is to file for SAA to be placed under business rescue in terms of Chapter 6 of the Companies Act.

Regards

Alf Lees MP
DA Shadow Deputy Minister of Finance