As far as SA Airways SAA is concerned we have to be frank with you and the

As far as sa airways saa is concerned we have to be

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As far as SA Airways, SAA, is concerned, we have to be frank with you and the South African public that it is in a precarious financial position. The airline has persistently incurred losses
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UNREVISED HANSARD JOINT SITTING TUESDAY, 25 JUNE 2019 Page: 305 over the past 12 years due to mismanagement, state capture and inability to service its debt. During the past period we have been working on a new investment case, if you can call it that, for SAA, in order that we prepare the airline for a partnership with strategic equity partner. So, when our colleague on my left talk about shutting down SAA, they should tell the 11 000 people who work at SAA how their future is going to be. They want to put them on the streets, at the moment. That is the case with Denel - you might have seen news headlines this morning that Denel can only pay 85% of staff salaries for June, due to liquidity constraints. However, later during the day, the latest update is that a lender has come to the assistance of Denel and full salaries will now be paid to all of the staff at Denel. There is no clearer example of the damaging effects of state capture than the financial strain and uncertainty the 3 500 Denel employees and their families may face each month as a consequence of what we have actually seen.
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UNREVISED HANSARD JOINT SITTING TUESDAY, 25 JUNE 2019 Page: 306 Let me come to Eskom more directly. The President said last week and I quote: One reason for the country’s lacklustre economic performance has been load shedding early this year, together with the continued uncertainty in the supply of electricity and the state of Eskom. The lesson is clear that for growth we need a reliable and sustainable supply of electricity. I will elaborate on some of these issues that Eskom confronted. Today Eskom has successfully managed the system in terms of its “winter plan”, for 94 days without load shedding and hopefully that will continue. A new head of generation business has been appointed last week, Mr Bheki Nxumalo. Of Eskom’s 15 coal-fired power stations, 10 now have permanent power station managers with full authority, much greater than they have had actually before. Soon, the Minister of Finance will be able to announce the appointment of a chief restructuring officer following further consultations in government to focus on the financial challenges that Eskom faces. The Eskom board will also address
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UNREVISED HANSARD JOINT SITTING TUESDAY, 25 JUNE 2019 Page: 307 some of the challenges within the generation side and ensure that more operational and engineering staff is employed at power stations themselves and outages are actually reduced. In terms of Eskom restructuring, good progress has been made in relation to working out the road map to implement the proposals in the February 2019 state of the nation address to separate its generation, transmission and distribution functions into three separate business entities, wholly owned by the State.
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  • Fall '08
  • Finklerberg

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