Though bailouts are off the table, SAA’s search for an equity partner still threatens taxpayer money, including public pensions, under “development” schemes.
The ANC’s hierarchy has a talent for high-flown euphemistic language which obscures the truth. Remember how ministers and even the then commissioner of police swore, hands on hearts, that the body of water at Nkandla was a “fire pool”.
They’ve been at it again – this time in front of the standing committee on public accounts (Scopa) in the National Assembly, where they have been energetically punting the narrative that never again shall South African Airways (SAA) be bailed out by the taxpayer.
The national airline has, since 2007, soaked up more than R80 billion in government bailouts, which did not prevent it from sliding into business rescue anyway.
Much of that taxpayer money was lost because of the ANC vultures feeding voraciously off the airline during the state capture years.
National Treasury has said there will be no more bailouts, but Transport Minister Barbara Creecy and SAA board chair Derek Hanekom – both loyal ANC apparatchiks – were there to tell Scopa that there is another way.
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SAA needs an equity partner – but the last time that was tried, through the Takatso consortium, the deal fell through… even though it was the sweetheart deal to end all sweetheart deals.
Now, says Creecy, there might be “an appetite” for an equity partner among the euphemistically termed development financial institutions.
These are organisations like the Public Investment Corporation (PIC), which handles trillions in government employee pension funds and has, in the past, been a bit of a piggy bank for connected individuals.
Of course, even the PIC may baulk at SAA. What then? Government enacts legislation to compel your pension fund to invest in “development” projects.
But no, don’t worry – it won’t affect the taxpayer.
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