Business

Numsa and Sacca threaten legal action over SAA liquidation

Last updated on September 11th, 2021 at 02:39 pm

The South African Cabin Crew Association (Sacca) and trade union Numsa have threatened to go to court to challenge a possible liquidation of South African Airways (SAA) after the government indicated it will no longer provide further funding for the embattled airline.

This came two days after National Treasury, in a briefing to Parliament, presented a slide presentation to a parliamentary committee stating that SAA did not require further bailouts as it was insolvent.

The presentation stated that SAA/SA Express and Alexkor should be “closed”, which led some, including the DA, to surmise it meant Treasury wanted to close the embattled airline down. This section of the presentation was not, however, discussed during the committee meeting.

In a statement on Sunday, the unions said they have instructed their lawyers to “prepare a legal challenge in order to ensure that those who are intent on liquidating South African Airways will be stopped in their tracks…

“We want to state emphatically that Numsa and Sacca will under no circumstances accept the liquidation of SAA…. also South African Express, or any other State Owned Entity.”

Last month, creditors voted in favour of postponing a vote on the airline’s business rescue plan to 14 July, which raised the possibility that the flag carrier could eventually be liquidated in what would be an unprecedented end for a state-owned enterprise.

SAA went into business rescue in December 2019 following years of losses and repeated state bailouts.

The airline’s financial losses totalled more than R10 billion over the past two years, according to documents submitted to Parliament earlier this year. Over the past decade, the government has bailed out the airline with almost R30 billion.

The unions called on President Cyril Ramaphosa to immediately intervene in the matter, and want Finance Minister Tito Mboweni to be fired for his “recklessness”, adding that his statement compromises the independence and credibility of the imminent vote on SAA’s business rescue plan.

(Fin24)

Albert Echetah

Recent Posts

Africa’s Green Hydrogen Revolution: A Path to Energy Independence

Recent research shows that Professor Abdessamad Faik believes Africa is at an important energy choice point as renewable-powered hydrogen allows…

March 18, 2025

US Threatens to Close Johannesburg Consulate Over Street Renaming

The United States plans to shut down its Johannesburg consulate after Sandton Drive gets renamed to Leila Khaled Drive even…

March 18, 2025

Africa’s Green Energy Push Aims to Electrify 570 Million Lives

The push toward renewable energy in Africa helps the 570 million people who currently live without reliable power access. Many…

March 17, 2025

Algeria Ramps Up Final Preparations for IATF2025 Trade Fair

The Algerian government prepares the hosting facilities for the Intra-African Trade Fair 2025, which will open its doors on September…

March 17, 2025

Laura Wolvaardt Calls for More Women’s Test Matches

South Africa captain Laura Wolvaardt wants cricket authorities to arrange more Test matches for women because Test cricket represents the…

March 16, 2025

Trump Administration Expels South African Ambassador Over Critical Comments

The United States issued Ambassador Ebrahim Rasool a one-way travel ticket from South Africa to show decreasing trust between the…

March 15, 2025

This website uses cookies.