The Organisation Undoing Tax Abuse (Outa) has called on businesses, individuals and the travel and tourism industry to boycott South African Airways (SAA) if government continues to prop up the failing airline with taxpayers’ money.
“That would send a strong message to the government that South Africans will not tolerate further tax wastage and flawed plans to keep failing state owned enterprises (SOEs) afloat,” said Outa CEO Wayne Duvenage.
This follows the allocation of another R10.5 billion to SAA in support of the relaunch of the failed state airline. “Since 2007, SAA has cost the taxpayer more than R72 billion in bailouts (R54bn in treasury grants and R19bn in government guarantees). This money could have been used instead to stimulate the economy by creating real and sustainable jobs through SMMEs, building and staffing more schools, clinics and law-enforcement entities, and addressing housing, water, sanitation and electricity needs to uplift our country’s people from the tentacles of poverty,” said Outa CEO Wayne Duvenage.
“We believe the current aviation industry climate and economic environment is the ideal time for the state to walk away and close down this once successful airline that was ruined through mismanagement and corruption.”
He has however made it clear that staff severance packages should be catered for generously. “Even if the liquidation costs increase to R20bn, this will still be cheaper than trying to get SAA flying again and will bring certainty to taxpayers about a future that will require no more bailouts for the airline,” he added.
The organisation warned that if government did not come to its senses, civil society would call on the flying public, both locally and internationally, to use their buying power to bring this issue to a head.
