CAPE TOWN - Public Enterprises Minister Pravin Gordhan has disputed claims by the National Treasury that it played no part in the selection of the preferred Strategic Equity Partner for South African Airways (SAA).
This emerged in a letter Gordhan wrote to the Standing Committee on Public Accounts (Scopa), where he clarified the sale of the 51% of SAA to the private consortium Takatso.
His letter followed that of National Treasury Director-General Dondo Mogajane last month after the department was given 14 days to answer in writing questions related to the disposal of the majority of the government’s shareholding in SAA.
In his letter, Mogajane said it was important to note that the National Treasury played no role in the selection process of the preferred strategic equity partner.
“National Treasury has raised concerns in relation to some of the terms and conditions agreed to between the preferred and the Department of Public Enterprises (DPE).
“It must be noted that the National Treasury was only consulted after the DPE had concluded the memorandum of understanding and agreed on the principles of the transaction with the selected SEP,” he wrote.
Mogajane also stated that the National Treasury was not in a position to indicate which process was undertaken by the Public Enterprises department and that it did not give consent to the transaction based on legal advice it obtained.
His response prompted Scopa to write to Gordhan asking for clarity on the selection of the strategic partner, among other things.
In his letter, Gordhan said the government approved that the SAA be repositioned and restructured with the introduction of a strategic equity partner.
He also said the disposal of shares transaction was not a procurement process.
“When SAA was placed under business rescue, the department started receiving expressions of interest for the acquisition of SAA and/or parts thereof.
“In order to ensure an accountable, competitive and fair process, the department appointed Rand Merchant Bank as a transaction advisor,” the minister said, adding that the appointment process was supported by the National Treasury.
Gordhan also said the transaction did not fall within the provisions of the Public Finance Management Act as the government and not SAA was disposing of the shares.
However, his department informed Treasury of the transaction, seeking concurrence.
“Intensive consultation on the matter of Section 54 took place between officials of DPE and NT,” he said.
He added that Finance Minister Enoch Godongwana had in February written to him stating that the disposal of a majority of shareholding in SAA has already been approved by cabinet and no approval, concurrence or noting was required from him.
“In the letter to SCOPA, NT indicates that it was not involved in the selection process for the SEP. The letter from the Minister of Finance to the Minister of Public Enterprises referred to above clearly contradicts this view,” Gordhan said.
DA MP Alf Lees said it was now up to Scopa chairperson Mkhuleko Hlengwa to agree to the DA's request for the two ministers and their director-generals to be called to appear before the committee to clarify the contradictions surrounding the disposal of the SAA shares.
“Whether it is Pravin Gordhan or Dondo Mogajane who has misled Scopa and thus the Parliament of SA, the guilty party must face severe consequences for such incredible disdain for Parliament,” he said.
Lees also said the most glaring omission by Gordhan was his failure to provide details of the terms and conditions contained in the agreements entered into by the department with the Takatso consortium.
Cape Times