https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Statements RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Embed Video

Solidarity: BEE middlemen run amuck at SAA and Prasa

Solidarity: BEE middlemen run amuck at SAA and Prasa
Photo by Duane Daws

1st December 2015

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

Trade union Solidarity said today that the irresponsible pursuit of black economic empowerment targets and the idea to develop black industrialists at all costs have plunged the South African Airways (SAA) and the Passenger Rail Agency of South Africa (Prasa) further into difficulties.

According to Dr Eugene Brink, senior researcher at the Solidarity Research Institute, SAA Chairperson Dudu Myeni announced earlier that SAA wanted to review its current agreement with the European company Airbus. In addition, he wants to make use of an unknown middleman who would buy these aeroplanes on behalf of the airline, and who would then supply the aeroplanes to SAA.

Apart from the fact that the original agreement with Airbus will not be complied with, this review would also cost tax payers R1,5 billion and add unnecessary costs. “This announcement followed after Myeni’s statement earlier this year that by 2018, SAA wants to spend 50% of its procurement budget of R20 billion on black industrialists and black economic empowerment. This is spending for the sake of spending and not aimed at converting a struggling airline into a profitable and prosperous enterprise,” Brink explained.

The Prasa scandal is starting to peak after it has emerged that this institution wants to have its tender with Swifambo Holdings declared invalid after this black economic empowerment consortium earlier had been granted the tender in a controversial manner. The tender process followed apparently did not meet the required criteria.

“Meanwhile, Prasa has granted a tender to a black economic empowerment consortium, whose only clients are Transnet and Prasa, to supply the by now controversial Vossloh Espana locomotives to this parastatal at a price, merely acting as middleman in the transaction,” Brink said.

“This ill-considered practice smacks of parastatals that are prepared to compromise the sustainability of their institutions and to squander tax money for the sake of developing and enriching black industrialists merely acting as middlemen,” Brink explained.

 

Advertisement

Issued by Solidarity

To watch Creamer Media's latest video reports, click here
 
Advertisement

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

 

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now