Democratic Alliance demands to know where SAA money will come from

Democratic Alliance demands to know where SAA money will come from

- Reports have surfaced that claims the government will lend a financial helping hand to the SAA

- The Democratic Alliance have caught wind of this and wants to know where the money will come from

- The party will demand answers from Minister of Finance, Tito Mboweni

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The Democratic Alliance has learnt about reports claiming that the South African government plans to aid the South African Airways.

It is believed the SAA will once again receive money from the state - this to help it pay salaries and continue to trade.

The DA isn't happy with this is wants to know just where the money for this aid will be coming from.

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Briefly.co.za gathered that a statement on the party's website read as follows:

"The Democratic Alliance (DA) notes with concern reports that funding from an as yet unknown source(s) has been provided to the bankrupt and loss-making South African Airways (SAA) to enable it to pay salaries and to continue to trade.
"This funding, whether some form of loan from banks, the sale of state assets, or even the illegal use of the R5 billion budgeted for the repayment of SAA loans means that once again the ANC government has opted to fund their SAA vanity project rather than the desperate needs of destitute SA’s and the 10 million unemployed South Africans.
"National government simply cannot keep continuing draining the national fiscus by bailing out failed state-owned enterprises like SAA."

The DA plans to demand answers from the Minister of Finance, Tito Mboweni.

This comes as it has been found that SAA will need another R8 billion in order to restructure, this is on top of R2 billion the government has already promised.

The restructuring plan is another attempt to save the cash strapped airline.

Liquidating SAA could cost as much as R50 billion through contract cancellations and debt payments.

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Source: Briefly.co.za

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