Outa probing possibility of reckless trading by boards of SAA subsidiaries
Outa has now written to Public Enterprises Minister Pravin Gordhan, among others, while submitting its objection to the Appropriations Committee this week.
JOHANNESBURG - South African Airways (SAA) subsidiaries are being drawn into sharp focus, with the Organisation Undoing Tax Abuse (Outa) saying that it was investigating the possibility of reckless trading by the executives and boards of these subsidiaries.
This is with regards to their solvency and lack of filing for liquidation or business rescue over the past year or more.
Outa said that it also wanted the diversion of R2.7 billion originally earmarked for the business rescue of SAA not to be used to purchase equity in three of its subsidiaries.
Outa has asked whether the boards of Mango and SAA Technical contemplated their respective organisations' solvency and acted in the best interests of their companies, while they were making losses prior to and during the lockdown.
It has now written to Public Enterprises Minister Pravin Gordhan, among others, while submitting its objection to the appropriations committee this week.
The organisation's Wayne Duvenhage: "We believe that due process hasn’t been done in this regard. All these funds should not be given to the subsidiaries."
He said that the diversion of the R2.7bn to the SAA subsidiaries was unjustified and flawed in relation to SAA's business rescue plan.
He said that Outa wanted the state to stop wasting its limited resources in the bailout of non-core state-owned enterprises.