Photo by: Duane Daws
Trade union Solidarity is demanding answers about whether the Government Employees Pension Fund (GEPF) is considering recapitalising “sinking ship” South African Airways (SAA) through the Public Investment Corporation (PIC), as the union’s members have a direct interest in the proper management and investment of the GEPF’s funds.
Recent media reports have suggested that the National Treasury is considering a number of avenues to finance SAA, with one of the proposals being that the PIC become a public equity partner to SAA.
The State-owned airline was currently haemorrhaging funds, estimated at R250-million a month, with its latest group income statement to Parliament’s Standing Committee on Finance showing a loss of R4.5-billion for the 2016/17 financial year, versus a budgeted loss of R1.4-billion.
Solidarity special projects head Schalk de Bruin said it was perturbing that the retirement money of “hard-working” government employees could possibly be used to save the national carrier.
In an open letter to GEPF CEO Abel Sithole, Solidarity further demanded that more clarity be given about the situation. “We expect the GEPF to disclose the full extent of the [proposed] recapitalisation and to consult with its members about it as well,” De Bruin said.
Meanwhile, the Health and Other Service Personnel Trade Union of South Africa (Hospersa) also slammed the National Treasury for considering using the GEPF to bail out the airline.
“Hospersa is shocked that government is considering using employees’ pension funds to rescue SAA. For the majority of employees in the public service, the pension fund is their only investment for the future. To use the fund to bail out State-owned entities, especially those plagued with alleged corruption and maladministration, would be reckless,” said Hospersa general secretary Noel Desfontaines.
He added that the union would take government to task should the employees’ pension funds be misused by those entrusted with its management.