Outa seeks to halt bailout of SAA subsidiaries

The Organisation Undoing Tax Abuse (Outa) wants the diversion of R2.7 billion rand originally earmarked for the business rescue of SAA, which will now be used to purchase equity in its subsidiaries, to be stopped.

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JOHANNESBURG - The Organisation Undoing Tax Abuse (Outa) will file a submission to Parliament's Standing Committee on Appropriations to halt the bailout of South African Airways subsidiaries.

The organisation wants the diversion of R2.7 billion rand originally earmarked for the business rescue of SAA, which will now be used to purchase equity in its subsidiaries, to be stopped.

Outa said that the funds should not be allocated to SAA Technical, Mango and Air Chefs as it appeared that due process was not followed in the diversion of funds.

It said that the matter of recapitalising the three subsidiaries was not contemplated as part of the allocation of the R10.5 billion to SAA in the business rescue plan.

Outa spokesperson, Wayne Duvenage: "We've also written to the minister of DPE, Minister Pravin Gordhan, as well as to the director-general of Treasury and others in this regards expressing our intentions to object to this process that these funds should not be allocated and hopefully the Standing Committee on Appropriations will heed our call as well as other who are objecting to this process."

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