Novick exit not serious
RELIEF: GORDHAN SAYS IT WILL EASE CONFLICT OF INTEREST CONCERNS
Minister tells Scopa members the deal to sell SAA remains on track.
Public Enterprises Minister Pravin Gordhan says Gidon Novick’s resignation from the Takatso Consortium board, as well as his reasons for doing so, should not be taken “too seriously” because Novick “was a small and minor partner in the consortium”.
Gordhan, along with some South African Airways (SAA) executives, was briefing the standing committee on public accounts (Scopa) on the state of the national carrier’s affairs, in parliament yesterday.
Gordhan’s comments come after reports of Novick’s resignation as director on the consortium’s board on Monday, citing a lack of information about the progress of the deal, the consortium’s ability to raise the capital committed and the team’s future role in the business, according to News24.
Further reports added Novick felt the lack of access to information had made his role as director difficult and impractical.
Not my job
However, according to Gordhan, maintaining communication with Novick and his partners is not his job. This is a role that should be taken on by the majority partners in the deal.
He said government has maintained communication with relevant entities regarding the progress of the SAA sale to Takatso.
“To the question about who has DPE [the department of public enterprises] been talking to, clearly we have been talking to the majority partner and it’s up to the majority partner to ensure whoever else is involved on the side – whether its technical backup people or the drivers or their partners – to keep them informed about what is going on,” he said.
Takatso Consortium – the entity primed to take ownership of a majority stake (51%) in SAA – is made up of local aircraft leasing firm Global Aviation and Harith General Partners, a pan-African investor in African infrastructure.
Aviation industry heavyweight Novick also has ties to Global Aviation through low-cost airline Lift, of which Novick is the joint chief executive, alongside Jonathan Ayache.
Gordhan added Novick’s departure from the Takatso board has brought some relief, as the deal now avoids potential chatter about conflict of interest.
“There is a sense of relief as well because there was a potential conflict of interest developing in the sense that if there was, let’s call it, SAA information put into the same pot from which another airline was also feeding off, the Chinese wall if you like between them would disappear,” he said.
Gordhan said the consortium members should “sort out their own problems”.
SAA is still a go
Amid fears that Novick’s departure may jeopardise the deal, he reassured Scopa members that everything remains on track. The deal, first announced 18 months ago, is yet to be finalised.
Takatso is expected to invest about R3 billion into the carrier over the next three years. Should the consortium fail to deliver on this, Gordhan says the deal will be pulled off the table.
“Enough work was done and will continue to be done – in interaction with them by DPE – to ensure they do have the capacity to raise the R3 billion within the period they have committed to.
“If they can’t show the money, there is no deal and there might be other possibilities we have to explore instead.”