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.
SAA entered into business rescue in December of 2019 and finished the expensive process in April.
The union and staff at South African Airways (SAA) have been served with Section 189 notices informing them that they were considering possibly retrenching about 1,203 employees.
Rescue practitioner, Siviwe Dongwana, said that the restructuring was moving ahead smoothly.
The South African Airways Pilots' Association (Saapa) is reviewing a Labour Court judgment that dismissed their bid to stop a lockout at the national carrier.
Finance Minister Tito Mboweni on Sunday night asked his nearly one million followers on Twitter if the country needed a national airline.
SAA is not the only state-owned enterprise (SOE) that will get funds from the fiscus. Various SOEs will be funded to the tune of more than R20 billion over the next few years.
The Public Enterprises Department said it received 20 expressions of interest from private sector funders, private equity investors and partners for a restructured SAA.
Workers demonstrated after government missed a deadline to make funding available for a restructuring plan.
The administrators took control of state-owned SAA in December after almost a decade of financial losses and published a rescue plan in June following repeated delays and wrangling over its future.
The Public Enterprises Department said that efforts to finalise the business rescue process and a decision on the sources of funding would be announced soon.
SAA said that it had received offers from investors, private sector funders and future partners who wanted to kick-start the restructured airline.
A total of 3,142 SAA employees have applied for the voluntary severance packages.
It was unclear who the potential entities were who had shown interest in the troubled national airline.
An outstanding guarantee of R16.4 billion owed to SAA creditors was confirmed by government on Monday.
In court papers, Finance Minister Tito Mboweni said that government was considering a number of options to 'mobilise' funding, including approaching institutions for the investment of pension funds.
The Departments of Public Enterprises and Finance outlined the pledge in a letter on Wednesday evening to SAA's business rescue administrators.
Phillip Saunders has been appointed as interim CEO for a new national carrier.
