Cape Town - Western Cape Premier Alan Winde has hit back at the ANC in the province over the issue of SAA’s R10.5 billion bailout and said bailouts of state enterprises are a reflection of poor governance at national level.
Winde was responding to accusations of “ignorance and cheap political point scoring” from the leader of the provincial opposition Cameron Dugmore (ANC) during the debate on the vote for the department of the premier in the Western Cape adjustment appropriation budget. The department’s budget has been reduced by R73.6 million in this adjustment.
The ANC voted to reject the budget and Winde said: “I’m sorry you are rejecting this vote. You spoke about SAA and yet another bailout. One understands that in this context the SAA bailout makes it so painful because it is a showcase of so many bailouts happening in our country with state enterprises that reflect such bad governance at a national level.
“The ANC should hang its head in shame for appointing cadres to state enterprises when all that happens after that is thieving, and then to top up the losses from the thieving we have to have bailouts,” said Winde.
Dugmore had said: “It is clear the premier and the Finance and Economic Opportunities MEC are not informed by the factual situation regarding SAA. Either ignorant but more likely simply scoring cheap political points.
“The truth is that the R10.5 billion allocated to SAA is in support of the business rescue process. This will pave the way to secure a private sector partner in a similar manner to Telkom. Already there has been an expression of interest from Ethiopian Airlines. If SAA were simply liquidated it would open up our country to claims by creditors in excess of R18 billion.”
EFF MPL Melikhaya Xego said: “The EFF welcomes the budget decrease of R73.6 million from the department of the Western Cape Premier. However, we are not pleased on how those funds were allocated and utilised. The money should have been used for purposes of direct service delivery for the poorest of the people in this province.
“This would have been in line with the premier’s dream of ensuring that every single person, despite their background, could live a dignified life in the province. But the budget allocation shows all of us that the DA government is not the correct one to turn such a dream into reality for our people,” said Xego.
Cape Argus