Pressure mounted on Tuesday for President Cyril Ramaphosa’s government to liquidate South African Airways and save taxpayers the burden of keeping the loss-making airline afloat.The latest push for the government to stop bankrolling the troubled SAA came from the Organisation Undoing Tax Abuse (OUTA).
According to OUTA, the South African government should let the SAA go and stop “throwing money” at the loss-making airline.
“It is irresponsible to throw more money at SAA,” OUTA executive manager Julius Kleynhans said.
The South African government, however, insists that it will not allow the airline to fold.
Public Enterprises Minister Pravin Gordhan recently told journalists that the government would soon unveil a package of more than R10 billion (about US$602 million) needed for the start of a restructured SAA.
The money would be reprioritised in Finance Minister Tito Mboweni’s adjustment budget next month and the hole would in the meantime be plugged with loans.
OUTA said pouring more money into the airline would add unnecessary pressure on taxpayers.
Similar sentiments have been echoed by opposition parties that feel the SAA is a drain on the fiscus and that the airline could do better in private hands.