Dali Mpofu asks if SAA could be saved with R10 billion of economic stimulus package
His comment comes after President Cyril Ramaphosa announced South Africa’s biggest spending plan of R500 billion in response to the Covid-19 pandemic.
Former national chairperson of the Economic Freedom Fighters (EFF) Dali Mpofu sought an explanation on why South African Airways (SAA) would not receive funding so as to prevent it from possible collapse.
Mpofu’s comment comes after President Cyril Ramaphosa announced South Africa’s biggest spending plan on Tuesday as “a one-off stimulus R500-billion injection into the struggling economy” in response to the COVID-19 pandemic.
“Can anyone explain why we can’t afford R10 billion, a mere 2% of R500 billion, to save SAA and thousands of direct and indirect jobs?” he asked.
The advocate continued to say: “Is it really better for those thousands of people to lose their jobs so that we use the relief package to give them welfare grants and food parcels?”
Can anyone explain why we can’t afford R10bn,a mere 2% of R500bn, to save SAA and thousands of direct & indirect jobs?
Is it really better for those thousands of people to lose their jobs so that we use the relief package to give them welfare grants & food parcels?👀
(10 marks)
— Dali Mpofu (@AdvDali_Mpofu) April 23, 2020
Ramaphosa’s broad range of interventions to save the country’s economy and help curb the COVID-19 pandemic included an R200-billion loan scheme with major banks; an R50-billion boost for grant recipients; R100 billion for jobs; R70 billion in tax relief; R20 billion for municipalities; 250,000 food parcels and more than R100 million to help protect front-line workers.
Last week, the government decided against giving the ailing SAA R10 billion, or organize money for it from “foreign sources”.
Public Enterprises Minister Pravin Gordhan wrote a letter to the airline’s business rescue practitioners that their apparent request for R10 billion must be denied.
However, the Economic Freedom Fighters (EFF) slammed the “deliberate collapse” of SAA allegedly by Gordhan.
In a statement, the EFF blamed the collapse on Gordhan, who it accused of creating an environment of fiscal uncertainty and “arrogantly” dismissing advisory measures provided by appointed business rescue practitioners.
Meanwhile, on Friday the airline’s unions received a draft settlement agreement offer open to all of their 4,708 employees that would see the termination of their employment contracts by April 30 in exchange for unguaranteed severance packages.
In other news – #TheQueenMzansi comes to an end
This must be a huge blow for the viewers as one of the most-watched TV dramas in Mzansi, The Queen will be coming to an end after running out of the episodes allegedly due to the national lockdown.
DStv’s most-watched show will go off air after the second week of May. The popular 9 pm time-slot will be replaced by reality TV shows Utatakho (Tuesdays), Papa Penny Ahee! (Thursdays), Seng’khathele (Fridays), and Madam & Mercy (Wednesdays). continue reading
Source: The Citizen
