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Mogajane: New airline can emerge from ashes of SAA to keep sector alive

Treasury Director-General Dondo Mogajane has detailed the impact of COVID-19 on South Africa and the intervention decisions by government.

Picture: @flysaa_care/Twitter

JOHANNESBURG - Treasury Director-General Dondo Mogajane said that he supported the move to dispose of SAA but the aviation sector must be kept alive with a new airline.

Mogajane has detailed the impact of COVID-19 on South Africa and the intervention decisions by government.

He said that among other losses anticipated would the be under-collection of about R1.9 billion in taxes from the sale of wines and spirits due to the state of disaster regulations.

Mogajane said that if non-core assets were draining the fiscus and there were people who wanted to buy them, they should be sold to address inequality and create more jobs but in turn, the sectors they were in should be supported.

"Non-core assets should be disposed of quickly, I agree, as we do that, we must be careful in ensuring that we have an opportunity to keep the aviation sector alive. How do we keep the aviation sector in South Africa alive? We may not keep it in the current context but we've always said that a new airline can emerge from the ashes of SAA so we preserve the airline industry in South Africa."

He said that the loss of taxes from the sale of wines and spirits would be a significant but temporary setback.

"There's a bigger benefit for the rest of South Africa bigger and I think I'm fine with it."

Mogajane said that conversations were ongoing on making the country’s borrowing more transparent but his assurance for now was that Treasury avoided indebting the country to a point where it could not recover.

LISTEN: COVID-19 and its cost to the South African economy