Public Enterprises Minister Pravin Gordhan has sought to explain why government has not yet finalised the sale of parts of South African Airways (SAA) to the Takatso Consortium.
SAA was placed under business rescue in December 2019. Last year, government announced that the Takatso Consortium was the preferred bidder to buy a 51% stake in SAA.
Gordhan said this when his department and SAA were briefing Parliament’s Standing Committee on Public Accounts on plans to sell the national airline.
He says government is still processing the details of the transaction to put them in line with the regulatory framework.
Gordhan says, “Takatso is not required to put any money into anything right now to do with the SAA because there is no deal. The transaction is still in the process of receiving regulatory approval. So why must we put money into something that has no legal standing at this particular point in time. ”
VIDEO: Gordhan says the sale of SAA stake to Takatso yet to be finalised:
In October, legal expert Mina Tong Mongalo said the investment company will still need to keep the information received confidential.
“The parties that are receiving the confidential information are still bound by the confidentiality meaning that they may not use that information either than the purpose of this litigation.”
On the other hand, aviation consultant, Dr Joachim Vermooten said since SAA is a public entity, its information should not have been kept confidential in the first place.
“I think the more transparency the better, there are many uncertainties from this transaction and I think apart from the court ruling it’s high time that the full contract is disclosed.”
VIDEO: Chartered accountant and political commentator Khaya Sithole Takatso deal with SAA:
Additional reporting by Nothando Magudulela.
Source: SABC News (sabcnews.com)