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DA seeks urgent court interdict to stop SAA bailout

The DA is arguing that another public bailout of SAA did not meet the definition of an unforeseen emergency, making relief unlawful.

Picture: @flysaa_care/Twitter

JOHANNESBURG - The Democratic Alliance (DA) is seeking an urgent court interdict to stop the bailout of South African Airways (SAA).

The party has filed an application at the High Court in Pretoria, citing section 16 of the Public Financial Management Act which allows the Finance Minister to spend money not budgeted for in "exceptional" and "unforeseen" circumstances.

But the DA argues another public bailout of SAA did not meet the definition of an unforeseen emergency, making relief unlawful.

Government has committed to mobilise funding for the requirements of the beleaguered national carrier.

More than R10 billion will be needed to fund SAA's contentious business rescue plan, which is aimed at cleaning up and stabilising the balance sheet of SAA.