The Democratic Alliance has announced that they’re seeking further information on the loan given to South African Airways from the Development Bank of Southern Africa (DBSA) – calling it a bailout instead of a loan.
In an earlier statement, Alf Lees, DA member of the Standing Committee on Public Accounts, said that the party would write a letter to the Minister of Trade and Industry, Ibrahim Patel, requesting full disclosure of the reported R3.5bn loan.
“This is simply a disguised taxpayer bailout of the bankrupt SAA.
“It takes money that should be invested by DBSA in real and sustainable development projects that will create jobs for the 10 million unemployed and largely destitute South Africans and throws it into the bankrupt SAA’s black hole,” Lees said.
SAA has come under severe financial pressure in the last couple of months, as years of mismanagement and corruption have led the airline to the brink of bankruptcy.
However, the DA argues that it is not the responsibility of one state-owned entity to support another, particularly if it is at the detriment of other sustainable ventures.
As part of the investigation, the DA will request the release of the following information:
- The amount of the loan
- The conditions, if any, attached to the loan
- The interest payable on the loan
- What security SAA provided to the DBSA for the loan
- What the SAA repayment obligations for the loan are. – Bjorn Vorster
