House Chairperson, the ACDP thanks the IFP for calling for this much-needed debate. As we know, state-owned companies pose the greatest threat to the South African economy, with many repeatedly requesting guaranteed lines of credit from government. Clearly, this cannot continue.
The interest-bearing debt of 10 of the largest SOCs has grown from R266,7 billion to R738,3 billion in 2017-18 - a staggering increase of 177% over eight years.
While Eskom remains the most serious risk to the fiscus, over the past 13 years, SAA has incurred over R28 billion in cumulative losses. We know that the airline is
bankrupt, and in its current configuration, unlikely to ever generate sufficient cash flow to sustain its operations. Then we had a strike.
The workers, Numsa's own members are all poorer after the strike. After costing the workers eight days in unpaid wages in a strike that should never have occurred, Numsa accepted the 5,9% that was offered before the strike. In other words, the union has cost its members a quarter of their monthly salary for no additional financial gain. That is disgraceful!
The implementation of the increase is also dependent on the Minister of Finance's additional cash bailout. That takes the total cash bailouts to R59 billion over the past 23 years, while running at a cumulative loss. Clearly, this is unacceptable.
Government has an understandable reluctance to provide further bailouts to SAA for working capital to fund its daily operations. That is not capital investment; that is running costs. The very likely outcome of the settlement is that it will be a temporary respite.
There comes a point in every struggling company's life when shareholders must decide where to draw the line and how best to cut their losses. The government has never quite made that decision on SAA. That time is now. Instead, Treasury grudgingly gives and the department comes time and time again for bailouts. Clearly, the time for the hard decisions is now.
Business rescue is required. A possible private equity partner is there and it is required. We need to invite those equity partners before there is nothing left to say.
So, from the ACDP's perspective, let us cut our losses and let us see what we can save. It is like an aunty at your Christmas party. She is there, but how do you continue when she misbehaves? You have to deal with it once and for all, once and for all. Hard decisions are required. Now is the time for those decisions. I thank you.