Cape Town — Minister of Public Enterprises, Pravin Gordhan, announced that the 51% sale of South African Airways (SAA) to Takaso Consortium has been called off.
Gordhan listed three reasons why the deal was off. Firstly, government needed to ensure a fair value was attached to the 51% shares. Secondly, that there was public interest secured in the fair value. Thirdly, that the airline was now in a more sustainable position than it was back in 2019. He added that SAA is secure enough for the next 12-18 months and can find other financial means if needed, The Citizen reported.
The deal had been controversial, with Gordhan previously saying some documents relating to it had to be kept secret due to the negotiations and the documents’ commercial sensitivity.
Public Enterprises Minister Pravin Gordhan has announced that the sale of a 51% SAA stake to Takatso Consortium has been cancelled. He says the airline will not get a government bailout, and no jobs will be lost.
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In response to Gordhan’s announcement, Takaso Consortium said the changes to the deal would have taken too long. The time constraints to meet new directives by competition authorities would have made the deal a lot more difficult to complete, EWN reported.
“That process as you know of the tribunal went in excess of, I think nine months or so. So, you were seeing another year if you look at where we are right now until we can again conclude this transaction.,” Takatso Director, Tshepo Mahloele, said.
Parliament’s portfolio committee on public enterprises chairperson, Khaya Magaxa welcomed Grodhan’s decision, saying the deal was an albatross around their neck and had to be called off, IOL said.
“We are totally in support of the termination of this deal by the Cabinet. It has been an albatross (around our neck) for far too long. It has been a source of disunity and confusion among us as members of parliament who are expected to unite in our endeavour to exercise our oversight responsibility,” said Magaxa.
Democratic Alliance (DA) members in the National Assembly Mimmy Gondwe and Alf Lees said this was a bad deal from the start, saying cabinet must be held accountable, while United Democratic Movement (UDM) leader, Bantu Holomisa, said Gordhan still has questions to answer.
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Compiled by Matthew Petersen
