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The Democratic Alliance (DA) has expressed its intention to contact the Minister of Public Enterprises, Pravin Gordhan, to request the full details of the Leadership Pact that it has signed with the unions representing South African Airways (SAA) employees.
This after the public companies department issued a statement calling the agreement an “innovative initiative”.
“The process that the Minister and the SAA workers have embarked on is bold and bold. All parties have signed a Leadership Compact that is committed to taking a new approach, recognizing that there will be a major performance-based culture shift for all leaders, managers and employees as the transition to a new one takes place. airline ”, read the part of the statement.
The district attorney also promised to try to get the ANC government to pledge not to make any further bailouts of SAA or to provide additional government guarantees or any other form of security to the airline.
RELATED: SAA To Be Replaced By “New National Airline”
The prosecutor expressed his disappointment at the lack of details in the media statement.
“The question that all South Africans will ask is whether or not this deal includes more than billions of rand in bailouts to keep the airline bankrupt and whether or not SAA’s majority ownership will be transferred to private equity.
“It is surprising that the unions and the public companies minister think that they can enter into a Leadership Pact that apparently does not have details and that the BRPs, Les Matuson and Siviwe Dongwana are expected to implement,” added the DA.
The party is of the opinion that the agreement also appears to override the BRP’s decision that employees should decide on a downsizing package before May 1, 2020.
The DA also hinted that the fact that the media statement does not make a single reference to the BRPs implies that Gordhan has apparently taken control of them by setting “very demanding deadlines for the development of the Business Rescue Plan …”. This is reportedly something that only Matuson and Dongwana can legally do.
“This shows once again that the minister believes that he is in charge and, what is worse, the BRPs are apparently criminals by apparently allowing the minister to dictate what they should do. It’s amazing that Matuson and Dongwana can be sidelined like this. “
The party reminded the couple that the BRP’s legal mandate is to design an acceptable commercial rescue plan or, failing that, request liquidation according to sections 128 to 155 of the Companies Law.
“In about five months, Matuson and Dongwana have not achieved any kind of commercial rescue plan.”
“Although the BRPs did not produce a commercial rescue plan within the time limits contained in the Companies Act, they did not request liquidation as required by the Companies Act either.”
The party concluded by stating that Matusan and Dongwana need to act together and resist any interference from Gordhan.
“The public deserves clarity about SAA’s future and the full details of any deals the minister has entered into and a guarantee that public money will not be wasted in a lost cause, especially during this time of crisis.”
The DA reiterated that it strongly opposes any additional bailouts, either in cash or in government guarantees, as working capital for SAA.
“Any financing required under the negotiated Leadership Pact must be raised from investors and not from the taxpayer.”
(Compiled by Kaunda Selisho)
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