Alf Lees

Dear MyPE The Democratic Alliance (DA) will write to the Minister of Public Enterprises, Pravin Gordhan, to obtain clarity on the source or sources of funds which is required by the South African Airways (SAA) Business Rescue Plan as proposed by Les Matuson and Siviwe Dongwana, the SAA Business Rescue Practitioners. The Department of Public Enterprises (DPE) has repeatedly implied that funds are available to fund this obscene Business Rescue Plan. A statement issued by the Department … [Read more...] about Who will be funding the obscene SAA business rescue plan, Minister Gordhan?

Dear MyPE The Democratic Alliance (DA) categorically reject the proposed business rescue plan by the South African Airways (SAA) Business Rescue Practitioners (BRPs), Les Matuson and Siviwe Dongwana, that relies on a R32.65 billion bailout from Government. The DA will write to the Minister of Finance, Tito Mboweni, to ask him to do what is right and oppose this ridiculous bailout. We will also write to the Competition Tribunal to request an investigation into this proposed SAA bailout as … [Read more...] about SAA’s Obscene R30 billion business rescue plan

Alf Lees MP - DA Member of the Standing Committee on Public Accounts Dear MyPE The news that yet another South African Airlines (SAA) CEO, Zuks Ramasia, has resigned is a further indication that SAA cannot be rescued. It must surely be clear that the extension to the end of May 2020 for Les Matuson and Siviwe Dongwana, the business rescue practitioners, to produce a business rescue plan is simply going to delay the inevitable liquidation of SAA. This unprecedented two-month extension … [Read more...] about SAA on the skids

SAA business rescue practitioners get licence to continue taxpayer bailouts Dear MyPE Yesterday, the SAA creditors and lenders gave Les Matuson and Siviwe Dongwana, the SAA Business Rescue Practitioners, yet another extension to the 31st of March 2020 to submit their proposed SAA business rescue plan. That means they will have had three months, which is considerably more than the period stipulated in the Companies Act. The complete lack of any urgency on the part of creditors and … [Read more...] about SAA continues to trade at the expense of the poor and the hungry

SAA business rescue plot thickens Dear MyPE It should probably come as no surprise that Les Matuson and Siviwe Dongwane, the SAA Business Rescue Practitioners, have requested that the SAA creditors extend the time available to them to produce a business rescue plan for SAA. It illustrates the lack of urgency on the part of the Business Rescue Practitioners but also on the part of creditors. This lack of urgency is no doubt a product of the R5.5 billion commercial lender and … [Read more...] about Lack of urgency on the part of the Business Rescue Practitioners puzzling

Dear MyPE The Democratic Alliance (DA) welcomes the Labour Court ruling which rejects the application made by the National Union of Metalworkers (NUM) and the South African Cabin Crew Association (SACCA), to stop the South African Airways (SAA) Business Rescue Practitioners, Les Matuson and Siviwe Dongwana, from retrenching staff. There is general consensus that SAA is overstaffed by at least 30% and with passengers abandoning SAA in droves, the overstaffing is probably much, much higher. … [Read more...] about SAA Labour court ruling on NUM and SACCA application welcomed

Dear MyPE It has come to the attention of the Democratic Alliance (DA) that South African Airways (SAA) Business Rescue Practitioners, Les Matuson and Siviwe Dongwana, may intend to have the Unemployment Insurance Fund (UIF) pay out SAA’s retrenchment packages. This comes as a precursor to the long-awaited retrenchments of the bloated SAA staff. The DA will therefore write to Les Matuson and Siviwe Dongwana, to request clarity on their intentions with regard to obtaining UIF funding to pay … [Read more...] about SAA allegedly attempting UIF retrenchment bailout by stealth

Dear MyPE The Democratic Alliance (DA) is not at all shocked to note reports that South African Airways (SAA) has run out of cash and as a dire, but foreseeable consequence, had to cancel as many as 19 domestic and international flights. We will now write to the business rescue practitioners, Les Matuson and Siviwe Dongwana, urging them to play open cards with South Africans and admit that SAA can not be turned around. They must urgently apply to the courts for SAA to be liquidated. SAA is … [Read more...] about SAA can not be rescued and must be liquidated

Editor: The title of this letter probably qualifies for the title of; "Understatement of the Year!" Dear MyPE The Democratic Alliance (DA) notes that the Minister of Finance, Tito Mboweni, as is required by section 16 (4) (a) of the Public Finance and Management Act (PFMA), tabled in Parliament today a report which details a bailout to Eskom to the tune of R17.652 billion. The first R5 billion was paid to Eskom on 2 April 2019. This report was snuck into the ATC without much fanfare to … [Read more...] about R17 billion Eskom bailout proof that things are much worse

Dear MyPE The Minister of Finance, Tito Mboweni, has confirmed in a letter to the Democratic Alliance (DA) that the National Treasury does not know how big the proposed bailout to Eskom will be. Following the National Energy Regulator’s (Nersa) announcement of tariff increases, the DA wrote to the Minister to request an update on the bailout allocation to Eskom, given that the tariffs granted are lower than what the Treasury used to calculate the bailout announced in the 2019 National … [Read more...] about What we know about how big the Eskom bailout will be

Dear MyPE The Democratic Alliance (DA) has written to Finance Minister Tito Mboweni to clarify by how much more government’s planned bailout for Eskom will be, and how exactly it will be financed. On Thursday, the National Energy Regulator (Nersa) announced Eskom tariff increases of 9.41% for 2019, 8.1% for 2020 and 5.2% for 2021 which are lower than the 10% per year increases used to determine the R23 billion per year bailouts for the utility in the 2019 National Budget. This means … [Read more...] about Eskom tariff increases mean bigger bailouts, more job losses and an uncertain future

Dear MyPE Finance Minister, Tito Mboweni’s maiden budget speech reveals a major increase in the gap between revenue and expenditure that has been caused primarily by the Eskom financial crisis. The Eskom crisis is only partly being dealt with by allocating bailouts of R23 billion each year over the medium-term totaling R69 billion. This will kick the can down the road until after the May General Election when we expect a more substantial funding of Eskom to be announced in the 2019 Medium … [Read more...] about A budget speech of bailouts not for the people of South Africa

Dear MyPE Tito Mboweni, the Minister of Finance, tabled a Medium-Term Budget Policy Statement that included R 5 billion in bailouts for SAA. Interestingly, the bailout for SAA is contained in a Special Appropriations Bill. The Special Appropriation Bill gives no details of the conditions that the Minister of Finance must impose in terms of the Bill. I will submit a parliamentary question to Minister Mboweni in order to obtain details of these conditions. This R 5 billion bailout is … [Read more...] about More taxpayer bailouts for SAA

Dear MyPE While the DA welcomes the disclosure of the remuneration packages of South Africa Airways (SAA) executives by the Minister of Finance, Nhlanhla Nene, to the Standing Committee on Finance (SCOF), it is shocking to learn that the financially troubled airline is spending millions of rands on salaries for executives on short-term contracts. Robert Head, who was appointed as CFO on 1 April 2018 on a six month contract, is set to earn R5 511 000, about R900 000 a month. The … [Read more...] about R900 000 a month