[ad_1]
NUMSA and SACCA note that there are countless examples of countries, including China, where the state owns some of the key companies in the economy.
- The South African National Metalworkers Union and the South African Cabin Crewmen’s Association react to SAA’s R10.5 billion to say that there is nothing wrong with having state-owned companies.
- Previously, the Organization Undo Fiscal Abuse called SAA’s allocation of R10.5 billion “outrageous” and called for a boycott of the airline.
- NUMSA and SACCA say there are countless examples of countries, including China, where the state owns some of the key companies in the economy.
There is nothing wrong with a company being state-owned on both an ideological and commercial level, the South African National Metalworkers Union (NUMSA) and the South African Cabin Crew Association (SACCA) said in reaction to the receipt of South African Airways (SAA) another R10.5 billion from last week’s Medium Term Budget Policy Statement (MTBPS).
The two unions welcome the allocation of funds, which will enable the implementation of SAA’s rescue plan, including the payment of severance packages to employees.
Earlier, Wayne Duvenage, executive director of the civil action organization, Organization Undoing Tax Abuse (OUTA), commented that the allocation of R10.5 billion to SAA is “outrageous”, especially after all the input and precautions provided by OUTA about this issue.
“In these desperate times, funds are cut from other budgets and allocated to a non-central public company, when this money could best be used to alleviate the plight of other urgent and more urgent needs in this country,” said Wayne Duvenage.
“OUTA believes that power must now pass to civil society, to send a powerful message to the state that bailouts of secondary state-owned companies require public attention. For this reason, OUTA calls for and will actively push for a public and corporate boycott. SAA in the future. “
The district attorney’s finance spokesman, Geordin Hill-Lewis, called the R10.5 billion for SAA “indefensible, immoral,” as the funds would have to be obtained by cutting the budgets of other departments, including police and education. higher.
NUMSA and SACCA, on the other hand, claim that while they appreciate that the OUTA is an ideological position against state involvement in the economy, there are countless examples of countries, including China, where the state owns some of the key companies . In the economy.
“There are 124 Chinese companies listed in the Fortune Global 500 and most of them are Chinese state entities. We have seen how quickly the Chinese government responded to the Covid-19 pandemic by accelerating investment in public infrastructure, by building of hospitals in days, largely using their state-owned companies to mobilize and respond to the crisis. This is clearly a validation that there is nothing wrong with being state-owned, “say NUMSA and SACCA. “What matters is how the government as a shareholder manages the asset.”
The National Transport Movement (NTM) reacted to the R10.5 billion allocation saying it is confident that the much-needed injection of capital into SAA will ensure that the airline restructures and returns to profitability in the short term.
“With a responsible and efficient board of directors, with experience in aviation and finance, SAA will be a force to be reckoned with again. It is appropriate that the Labor Party as a collective gives a necessary space for the new administration and NewCo to recover from the plethora of the corruption that has devastated the former SAA, “said NTM President Mashudu Raphetha. “Gone are the days when work was considered an enemy but a fundamental actor.”
