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A parliamentary reply from the Department of Public Enterprises received yesterday has revealed that despite facing ongoing financial turmoil, and requiring R1.6-billion in bailout funds last year, South African Airways (SAA) has forked out a total of R307-million in sports related sponsorships and free travel for sporting celebrities since 2008.

In other words, one fifth of the amount designated to SAA in bailout funds last year has been spent on sporting sponsorships and free travel - which includes beneficiaries like Ángel Cabrera, an Argentine professional golfer who plays mainly in Europe. The Department refused to disclose precisely how much any individual sponsorship amounted to, as they consider such information to be commercially sensitive information and confidential, however the mere fact that SAA has spent such a significant amount on sporting sponsorships, even while simultaneously requiring bailout funds, is difficult to comprehend.

While the Democratic Alliance (DA) acknowledges the need to remain competitive in the global airlines industry, and that sponsorships can aid this, the sheer value of the sponsorships seems astonishing, and it seems highly doubtful that SAA is getting any bang for their buck. Faced with a choice of spending R307-million on freebies and sponsorships, and financial stability, we would prefer the latter from a state owned enterprise.

The bailouts for SAA over the past five years have come either as cash injections or loans guaranteed by the state. The history of these bailouts shows that every year the state is paying a fortune to keep SAA afloat:

• 2004/05 - R6.1 billion
• 2005/06 - R2.4 billion (conversion of loans to equity)
• 2006/07 - R1.3 billion (loan guarantees)
• 2007/08 ­- R5.4 billion
• 2008/09 - R1.6 billion

Even though the Cabrera sponsorship was negotiated back in 2007, we must remember that SAA received significant bailouts the same year. The remarkable fact is that the ANC's developmental state model has contrived to pay out nearly R40m on freebies, and millions more on sponsorships, through one of its parastatals. We believe this culture of wasteful spending needs to be reigned in.


PARLIAMENTARY REPLY:

Mr T D Lee (DA) to ask the Minister of Public Enterprises:

(1) Whether SA Airways (SAA) is providing any form of sponsorship to a certain person (name furnished); if so, what are the (a) details and (b) value of the sponsorship;

(2) whether SAA is providing any form of sponsorship to any (a) person, (b) organization and/or (c) institution; if so, what are the (i) details and (ii) value of the sponsorship, in each case? NW1009E

REPLY

(1) Yes, SAA is sponsoring Mr Angel Cabrera. The sponsorship is for a period of three years, expiring on 31 August 2010. The value of the individual sponsorship is commercially sensitive information and confidential, and thus cannot be disclosed. Disclosure could be prejudicial to both SAA and the individual sponsored.

(2)(a-c) Yes, SAA is providing sponsorships in the said regard.

(2)(i) Details of the sponsorsed organisations and individuals are indicated below:

· Sunshine Golf Tour
· ATP Tennis
· Cricket SA
· SA Rugby
· SA Football Association
· ISM Golf Players
· Mr Angel Cabrera

(2) (ii) The total value of SAA's sponsorships amounts to R268,3million in cash and R38,7million in free travel which is spread over four years from 2008 to 2012. The individual value per sponsorship is commercially sensitive information and confidential, and thus cannot be disclosed. Disclosure could be prejudicial to both SAA and the organisation being sponsored.