Siyabonga Mkhwanazi
DAYS after cabinet announced the transfer of SAA to the National Treasury, it has refused to be drawn on key questions on overseeing the airline, including whether it would give it another cash injection.
This followed a bailout of R5 billion two years ago, before the airline requested another loan guarantee from the state a few months ago.
Treasury spokesman Jabulani Sikhakhane yesterday declined to say whether the airline now stood a better chance to receive the requested bailout. He said the Treasury was clear in its statement last week that it would not comment until all the processes had been finalised.
This includes the issuing of the proclamation by the Presidency to transfer SAA from Public Enterprises to the Treasury.
“The transfer of these administrative powers, which are derived from the South African Airways Act 2007, will be done via a proclamation in the government gazette. Such a transfer of administrative powers from one minister to another is allowed for in terms of the constitution of the Republic of South Africa,” said the Treasury in its statement last week.
Sikhakhane said the fact that SAA now fell under the Treasury did not mean that things would change. SAA would be subjected to the same scrutiny as it would be in any other department, he added.
Public Enterprises Minister Lynne Brown admitted last week at a press conference that the problems of SAA were financial. However, she had refused the idea of another bailout, but maintained that alternatives had to be found in rescuing the airline.
Minister in the Presidency, Jeff Radebe, told journalists during the post-cabinet briefing that this transfer would allow the Treasury to keep a closer watch on the performance of SAA.
Deputy President Cyril Ramaphosa has been tasked with overseeing the airline, together with other ailing state-owned entities, including Eskom and the Post Office.
The Land Bank was transferred in 2008. The bank was in a shambles, losing money and failing to perform when then president Thabo Mbeki ordered its transfer from the Department of Agriculture and Land Affairs to the Treasury.
The Land Bank has since stabilised and last week cabinet appointed its new heads.
Former ANC MP Arthur Moloto is the chairman. He was one of the finance gurus in Parliament for the ANC. He also oversaw the process of appointing the new auditor-general as he sat in the ad hoc committee that interviewed eight candidates vying for the position to succeed Terence Nombembe.
Parliament unanimously agreed on Nombembe’s deputy Kimi Makwetu to succeed him.
Cabinet has also appointed Tshokolo Nchocho as the new chief executive of the Land Bank. Phakamani Hadebe was chief for a few years after he was seconded from the Treasury. He stepped down in December last year and Lindiwe Mdlalose is acting chief.