Despite its financial difficulties, South African Airways (SAA) is forking out R307-million in sport-related sponsorships over four years, according to Public Enterprises Minister Barbara Hogan.
Replying to a parliamentary question by the Democratic Alliance’s Donald Lee, Hogan said SAA was sponsoring Argentine golfer Angel Cabrera for three years up to August 31 this year.
SAA was also providing sponsorship for the Sunshine Golf Tour, ATP Tennis, Cricket SA, SA Rugby, the South African Football Association, and ISM golf players.
The total value of SAA’s sponsorships amounted to R268,3-million in cash and R38,7-million in free travel, which was 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,” Hogan said.
Lee on Wednesday said the R307-million in sports-related sponsorships and free travel for sporting celebrities since 2008 meant that one-fifth of the amount designated to SAA in bailout funds last year — R1,6-billion — had been spent on sporting sponsorships and free travel.
The mere fact that SAA had spent such a significant amount on sporting sponsorships, even while simultaneously requiring bailout funds, was difficult to comprehend.
“While the 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,” Lee said. — Sapa