Pretoria - Public Enterprises Minister Lynne Brown still wants to see the appointment of a person or company to help South African Airways (SAA) turn its fortunes around.
“I still want a strategic person or company to be appointed to help us in SAA work off our balance sheet because the state does not have money to bailout [the airline]. I think that came out very clearly in the Medium Term Budget Policy Statement,” she said on Thursday.
Responding to a question on whether a strategic partner for the national carrier is to be found, the Minister said that there is a need to look at a new business model for the airline.
“We need to look at a new business model for SAA and to match that with a new financial model, and within that financial model it will determine whether we take a strategic partner or whether SAA can live off its balance sheet. So it remains in the pool for discussion,” she explained.
The Minister was responding to questions posed by the media at the Economic Sectors, Employment and Infrastructure Development Cluster (ESEID) media briefing which was chaired by Rural Development and Land Reform Minister Gugile Nkwinti.
The briefing spoke to the achieves of ESEID‘s programme of action quarter achievements.
SAA CEO
On the issue of SAA Chief Executive Officer (CEO) Monwabisi Kalawe’s suspension, Minister Brown said the CEO is still not at work.
“At this stage the CEO is not in his job but we started a process to make sure that there’s a fair process that happens within SAA around the CEO. I am committed to that,” she said.
Kalawe, who was appointed in April 2013, was suspended by the board recently.
“You will remember that the board suspended him and then I told the board that they should not be suspending him unless there is a due process. The board then reinstated him and so I believe that, but he is still not in his job,” explained Minister Brown, adding that the matter is currently at a sensitive level.
The Minister highlighted that the national carrier is a strategic asset that belongs to the people of South Africa.
Interim Rail MoU
Meanwhile, Minister Nkwinti highlighted that the Minister of Transport Dipuo Peters and Minister Brown have signed a Memorandum of Understanding (MoU) on the implantation of an Interim Rail Economic Regulatory Capacity for an opportunity to be created for private sector participation in the rail environment.
“The MoU between us and the Department of Transport is to balance the private-public participation and make it possible for the private sector to participate in. The MoU in essence is structured around how we balance the relationship between the public and the private sector. That’s the essence and it deals with issues like completion,” explained Minister Brown.
Moloto Road
The cluster told media that through the Passenger Rail Agency of South Africa (PRASA), the Department of Transport has started a strategic intervention on the Moloto Road, through looking into constructing a new 120km rail line, linking Gauteng and Mpumalanga provinces.
The City of Tshwane recently launched its A Re Yeng transport system between the CBD and Hatfield. The Nelson Mandela municipality Libhongo Lethu will run a new Phase 1 service on its upgraded network in July 2015. George Local Municipality (Go George) will be launching its full network of services in December 2014. – SAnews.gov.za
