NATIONAL REVENUE FUND
Finance committee asks about legality of SAA bail-out
Parliament’s finance committee is probing the legality of the Treasury’s use of section 16 of the Public Finance Management Act to dip into the National Revenue Fund for the R3bn bail-out for SAA. The use of the section is restricted by the act for expenditure of an exceptional nature, which cannot be postponed for a future appropriation of funds by Parliament "without serious prejudice to the public interest". Committee chairman Yunus Carrim has referred the question of legality of the use of the section to Parliament’s legal advisers for advice, following a request by DA deputy finance spokesman Alf Lees. The legal advice will be presented to the committee on Thursday in the presence of legal advisers from the Treasury. EFF chief whip Floyd Shivambu said using the section for the bail-out was illegal. Lees pointed out that the need for a bail-out for SAA was foreseen for months before it was made and so it could easily have been provided for by way of a normal appropriation of fun...
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