Treasury asked to explain conditions of SAA bailout
Parliament's finance committee has also questioned the legality of Friday’s R3 billion transfer to the national airline.
CAPE TOWN - Parliament's finance committee has demanded that Treasury explain the conditions of its R10 billion bailout to the South African Airways (SAA).
It's also questioned the legality of Friday’s R3 billion transfer to the national airline, saying it appears Treasury has bypassed parliamentary processes.
The Economic Freedom Fighters (EFF) has gone as far as to label the decision to give more of taxpayers' money to the ailing airline, as “craziness”.
Treasury Directory General Dondo Mogajane says the decision to transfer funds to SAA was made in the public interest and is in line with emergency provisions in the law.
But committee chairperson Yunus Carrim says Treasury has not done enough to explain its decision.
“We can’t give money like that, it’s almost unconditional.”
The EFF’s Floyd Shivambu says the bailouts can’t be allowed to continue.
“It’s craziness which must be stopped by a patriotic unity of sensible Members of Parliament.”
Legal advisors have been given until Thursday to report back to the committee on the legality of the transfers.
LISTEN: Dondo Mogajane lists what Treasury expects from SAA