SAA sale faces challenge from the UDM
THE UDM has threatened to haul the government before the courts over the “nebulous” SAA deal announced by Public Enterprises Minister Pravin Gordhan last week.
Takatso Consortium is expected to acquire a 51% stake in SAA while the government would retain a 49% shareholding in the new airline.
Gordhan said Takatso would inject more than R3 billion into the deal.
This came after SAA had been in business rescue from December 2019, and the business rescue practitioners ended the process two months ago.
Independent Media attempted to obtain more information about the finalisation process, but department spokesperson Richard Mantu said: “We are still in the due diligence process. Once that process is finalised, we will communicate to the public.”
He was unable to provide a timeline as to when the process would be finalised. However, the deal is set to be delayed as United Democratic Movement (UDM) leader Bantu Holomisa announced yesterday that his party intends to challenge the sale.
In a statement, Holomisa said his party had already met its legal team to discuss court action.
“As we all know by now, Takatso Consortium is comprised of Global Aviation and Harith General Partners, the latter of which was fingered by the commission of inquiry into allegations of impropriety regarding the Public Investment Corporation (the Mpati Commission).
“The entire SAA deal has been nebulous, and it is unclear how the government prioritised Harith as a partner after the negative things the Mpati Commission had to say about it,” said Holomisa.
In his announcement, Gordhan described the selection of the consortium as a “ground-breaking” decision for the government.
He said: “We have looked long and hard at the proposals submitted, and our clear choice of a preferred partner is the Takatso Consortium.
“The objective of bringing in an equity partner to SAA is to augment it with the required technical, financial and operational expertise to ensure a sustainable, agile and viable South African airline.
“SAA will contribute to the venture, the brand, the flag, landing slots, route licences, lounges and a successful loyalty programme (Voyager).”
Harith co-founder and consortium chairperson Tshepo Mahloele said the consortium has the experience, expertise and capital to transform SAA into a substantial operating business in its own right.
“The partnership represents a robust, exciting South African-bred solution. Harith, as owner of Lanseria International Airport, has significant experience in the transport infrastructure and aviation sectors.”
Takatso’s chief executive, former Comair co-chief executive and recently the co-founder of Global’s airline, Lift, Gidon Novick, said he was confident that SAA could be built into an efficient, customer-obsessed and innovative airline that serves as a catalyst for growth in the South African economy, particularly tourism.
The announcement was met with varied reactions from organisations and political parties.
Efficient Group chief economist Dawie Roodt was of the opinion that while he welcomed the sale, the government should have sold the entire entity, not only 51%.
The SACP said that state participation on behalf of the people as a whole in the economy should increasingly be supported by collective forms of ownership, which the state must develop and support as part of an economic and broader social transformation agenda.