Public Enterprises Minister Pravin Gordhan announced on Wednesday that the negotiations on the transaction were terminated as there was no agreement on the revised transaction structure. Picture: David Ritchie/Independent Newspapers
The public enterprises portfolio committee has welcomed the cancellation of the sale of South African Airways to preferred strategic equity partner, Takatso Consortium.
Public Enterprises Minister Pravin Gordhan announced on Wednesday that the negotiations on the transaction were terminated as there was no agreement on the revised transaction structure.
The deal, signed in February 2022, was subject to renegotiation of the terms of the transaction.
Takatso has since confirmed that it wrote to the department last Friday signalling its intention to trigger the termination by mutual consent. It had concluded that the revised transaction terms were no longer in the best interest of its stakeholders
Chairperson of the Portfolio Committee on Public Enterprises, Khaya Magaxa said the decision was an important development.
He noted that the committee had been examining and evaluating the proposed Takatso deal in the interests of promoting transparency, accountability and with the best interests of the public.
“We welcome the decision by the cabinet to terminate the Takatso Consortium deal. This allows us to re-evaluate and refine the processes we have been undertaking to ensure the best outcomes for our South African Airways. We remain committed to promoting transparency and accountability in the sector,” he said.
Magaxa said the cabinet’s termination of the deal aligned with the committee's objective of safeguarding the public interest.
“The committee acknowledges the importance of a thorough and comprehensive evaluation of any proposed partnership or agreement involving the government as a shareholder in state-owned companies.
“This termination allows for further scrutiny and exploration of alternative options that will ensure the sustainability and growth of South African Airways.”
The cancellation of the sale of SAA shares comes as the committee initiated an investigation after former department’s director-general, Kgathatso Tlhakudi, petitioned National Assembly Speaker Nosiviwe Mapisa-Nqakula,
Tlhakudi made allegations against Gordhan over the Takatso consortium deal.
Magaxa said the committee will closely monitor the developments following the termination of the Takatso deal, and actively engage with relevant stakeholders to ensure the best outcomes for the sector and the public at large.
“We remain committed to promoting transparency and accountability in the sector as we continue with the investigation, as instructed by the Office of the Speaker. Our aim is to uncover the truth and ensure that the best interests of the public are protected,” he said.
Cape Times
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