Government has mismanaged SAA and SA Express through a malevolent mixture of incompetence and corruption, and is now trying to undermine the Constitution to avoid being held accountable, writes Jacques Jonker
With respect to SAA, Public Enterprises Minister Pravin Gordhan stated that the Public Finance Management Act remains in force because, according to government, the business rescue practitioners effectively became the accounting authority when appointed, and are thus “accountable to the executive authority”.
A concurrent reading of sections 1 and 50 of the PFMA implies that whomever takes on the role of accounting authority of a public entity should effectively be accountable to government . Subsection complements subsection by stating that no person or organ of state may interfere with the function of the courts.
Government has not done this. According to research by aviation industry expert Joachim Vermooten, government has given roughly R52.6 billion in financial assistance to SAA between 2007, when SAA was placed under direct government control, until October last year. The moment government launched this attack on the independence of the business rescue practitioners, they should have applied to the court for an urgent interdict.
Department of public enterprises officials allegedly met with Ziegler SA, the creditor of SAX who launched the court application that resulted in SAX being placed in business rescue, to try to persuade it to either withdraw the application or remove the rescue practitioners from the restructuring process.
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