Finance Minister Tito Mboweni on Thursday accused the Department of Public Enterprises (DPE) of misleading South Africa in a statement that welcomed its allocation of R10.5 billion to finance a trade rescue plan for the SAA.
Mboweni said at a joint meeting of Parliament’s standing and finance committees, “This morning the statement out of the DPE is misleading to South Africans. This is not true, but it may be, as it is”.
It is customary by the minister to brief the committees on the next day of the distribution of its medium-budget policy statement, where the money was announced as a one-year adjustment.
Mboweni was quipped by MPs over a highly controversial allocation for a closed-loss airline and said he wanted to correct a perception that it was a bailout.
He said that a bailout would greatly increase the country’s spending, and the money was earmarked for the implementation of the trade rescue scheme adopted in July.
However, it appeared in the Reform Committee addressing their interlocutors because the Department of Public Enterprises did not call the funding a bailout.
“This is not a bailout and I have asked someone what to send me for breakdowns that take us to SA5 billion for SAA and I will get it back as soon as I get it, but I will insist on it. Want is not a bailout, ”he said.
A bailout would have seen the National Treasury make a “huge injection” into the SAA.
Mboweni said the funds were found mainly by cutting the budgets of the departments of police and education.
He is openly opposed to raising further funds for state-owned enterprises, especially national carriers, creating a perception of a political deadlock with Public Enterprises Minister Pravin Gordhan, who Stubborn that SAA should not be liquidated.
Gordhan’s department said on Thursday that the rescue plan was “the only option to bring the airline back from the brink,* where employees, suppliers and business partners can continue to contribute to the South African economy and its integration into the global economy”.
He said the allocation would allow the appointment of an interim board and senior officials, fund a voluntary severance package, help SAA settle legacy debts and a suitable private equity partner to support the launch of a new airline Will pave the way for the selection of. “
Mboweni distanced himself from plans to launch a new airline in the future, and told MPs that it was up to the PSUs to decide whether he would go ahead. “It’s not my street and I’ve been asked many times to be in my street.” He suggests that those who have further questions address themselves with Gordhan.Gordhan’s office declined to comment.