DA files court application to block SAA bailout
The Democratic Alliance has filed an urgent court
application in the North Gauteng High Court to stop the bailout of South
African Airways.
This comes as the National Treasury has committed to supporting and sourcing funding for the business rescue plan for the carrier, which will result in the establishing of a new national airline.
The DA’s Geordin Hill-Lewis says another public bailout of SAA does not meet the definition of an unforeseen emergency.
"Our application seeks to interdict the use of Section 16 of the Public Finance Management Act (PFMA), which gives Finance Minister Tito Mboweni “emergency” powers to spend money not budgeted for in “exceptional” and “unforeseen” circumstances," says Hill-Lewis.
The party says if Mboweni has already transferred funds to SAA, based on his letter of support, the application seeks to interdict the use of those funds pending the outcome of the court application.
"Conversely, if funds have not been disbursed, the DA seeks to interdict any disbursement. Bailing out SAA is an ethically indefensible choice given the poverty and hardship so many are facing in the country,” Hill-Lewis said.
The party has given Mboweni until Sunday to file an answering affidavit.
SAA's creditors approved the airline's business rescue plan in a vote on Tuesday, a move that's been welcomed by the SAA Pilots' Association.
