DA MP reveals secret Cabinet memo on R10bn SAA bailout

DA MP Alf Lees on Wednesday revealed a secret Cabinet memorandum that allegedly shows that Finance Minister Malusi Gigaba is planning to give South African Airways (SAA) a R10-billion guarantee by selling government shares in Telkom.

Government has a 39.52% stake in Telkom, which is held by the Public Investment Corporation. The shares are estimated to be valued at R14 billion.

Earlier this month, SAA executives told parliament’s standing committee on finance that the airline would need R13 billion from the state to resolve its liquidity woes.

Gigaba has agreed in principle to recapitalise the struggling state-owned airline, but said he would only make an announcement in this regard in his medium-term budget policy statement.

His deputy, Sfiso Buthelezi, on Wednesday confirmed that National Treasury saw an obligation to recapitalise the airline, which is on the brink of bankruptcy, during a meeting of parliament’s Standing Committee on Public Accounts (Scopa).

Deputy President Cyril Ramaphosa declined to comment on the leaked Cabinet memo. He warned Lees that, should the document be found to be confidential, the MP could be charged and possibly face jail time, as he is not a member of the executive.

Ramaphosa was speaking in the National Assembly during his monthly question-and-answer session.

– Additional reporting African News Agency (ANA)

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