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By ANA Reporter 
2h ago
Cape Town – Finance Minister Tito Mboweni respondsreto criticism for his approval of the rescue funds for South African Airways with a tweet saying that in politics you lose some battles if you play as a team.
The minister has not been a supporter of saving the losing airline, but the Department of Public Enterprises said on Friday the government would re-prioritize funding to find the R10.3 billion required for the company’s business rescue plan. SAA.
Mboweni is expected to announce the funding in the medium-term budget policy statement next month.
The announcement prompted the Democratic Alliance finance spokesman, Geordin Hill-Lewis, to challenge the minister to defy the Cabinet, in particular the Minister of Public Enterprises, Pravin Gordhan, and refuse to take advantage of the funds.
Hill-Lewis said the statement from Gordhan’s office was both a “crushing defeat” for Mboweni’s plans to stop investing money in bankrupt parastatals and an insult to the finance minister.
On Twitter, Mboweni responded to Hill-Lewis saying, “Failure to understand the nature and content of the policy could lead one to disastrous conclusions.
“A balanced approach is essential. In politics you have to be a member of the team! You will not like all decisions, but you must solve problems based on what is in the national interest!”
Hill-Lewis responded with another statement urging Mboweni to take the issue to the wire and resign if he lost the political battle.
“Mboweni must not accept defeat with such meekness. The Democratic Alliance calls him to fight this bailout decision and do what is right for the country, not what is right for his party,” he said.
“It should be hot on the heels and refuse to fund this bailout. South Africa needs a finance minister who will stand up against political pressure and hold the line. If he doesn’t, he will be a lame finance minister who is no longer in control of spending. public “.
He said the SAA dispute was not simply about the airline, but about the credibility of the government’s commitment to fiscal discipline and economic reform.
“This is a critical moment for Mboweni, who has drawn a line in the sand on this issue, repeatedly saying that the government should not and would not rescue SAA again. If he accepts defeat, then he will have to carefully consider his future in the future. government “.
After SAA’s business rescue plan was accepted earlier this year, Mboweni said in court documents filed in response to a request from Hill-Lewis that the government had not committed to funding the rescue plan but to mobilize to secure it.
However, last week, the airline’s corporate rescue team called a meeting with creditors in which it said the plan was at stake because no funds had been received.
This was despite Gordhan’s assurances that the government has received unsolicited expressions of interest from potential investors and strategic equity partners.
SAA last made a profit in 2011 and lost some R10.4 billion in the last two financial years, roughly the amount it requires to keep the airline afloat and meet voluntary severance agreements with roughly 3,000 employees.
African News Agency / ANA
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