Cape Town - Defiant Public Enterprises Minister Pravin Gordhan has once again refused to disclose the nature of the controversial deal with Takatso for the sale of SAA, saying South Africans will only know about it when the government is ready.
He did however confirm that the sale was now the subject of litigation.
Answering questions in the National Assembly, Gordhan said there was a matter being heard in the Western Cape Cape High Court as the parliamentary proceedings were taking place.
“Parties who originally could not show a single cent of any consequence in order to become a strategic equity partner, have initiated litigation.
“It is interesting that a political party from this House had a legal representative present during the hearing today. One wonders what their interest in this matter is,” he said.
Gordhan said the litigation sought to ensure the very important project of restructuring a state asset and securing the jobs of pilots, airline staff and people on the ground was sabotaged to whatever extent that was possible.
“From our side as the government we want to ensure that this project succeeds and everything that is possible will be done to avoid attempts to liquidate SAA.”
The government sold 51% of shares in SAA to a strategic equity partner, Takatso Consortium, following the business rescue process.
Gordhan told the MPs that by the end of the year or soon thereafter the partnership between the government and Takatso would be formalised and commercialised.
“The whole purpose of the business rescue process was to ensure we save as many jobs as possible, secure assets and keep connectivity between SAA and the continent on one hand and globally on the other hand intact as possible. Liquidation has never been an option,” he said.
Asked about the reports that the International Airservice Licensing Council was revoking 20 SAA international routes due to limited capacity, Gordhan said they could be re-applied for.
He ruled out the possibility of cancelling the pending transaction with Takatso and the selling of SAA.
Meanwhile, the DA has called for the immediate cancellation of the SAA-Takatso deal and liquidation of national airways without any further taxpayer bailouts.
DA MP Alf Lees said the clandestine deal between SAA and Takatso has taken 16 months to conclude but has not been implemented.
Lees also said it was likely that SAA has run up new operational losses in the region of R1 billion or more since its post business rescue operations resumed, and the proceeds from a liquidation are unlikely to meet these new liabilities.
“SAA remains a fiasco that the taxpayer is yet again going to be fleeced for more bailouts in the October 2022 Medium Term Budget Statement. The taxpayer cannot be expected to continue footing the bill for SAA’s billion-rand deficits, all the while having a proposed private equity partner who sits idly by holding on to their own cash,” he said.
Lees added that after failing to heed DA’s call for the full privatisation of SAA, Gordhan should now free South Africans from the unsustainable SAA-Takatso deal by liquidating the airline and using the proceeds to pay off outstanding debt.
Cape Times