DA takes action to have Gordhan account for cancelled SAA/Takatso deal

Issued by Dr Mimmy Gondwe MP – DA Shadow Minister of Public Enterprises
14 Mar 2024 in News

Please find attached a soundbite by Dr Mimmy Gondwe MP.

Following the inevitable cancellation of the controversial SAA/Takatso deal yesterday by the Minister of Public Enterprises, Pravin Gordhan, the DA has today written to the Chairperson of the Portfolio Committee on Public Enterprises, Hon Khaya Magaxa, to request that Gordhan appears before Parliament, prior to its rising towards the end of this month, and account on the now canceled SAA/Takatso deal.

Gordhan must provide a detailed account, including supporting documents, of the due diligence conducted by his Department on:

  • The valuation of SAA, especially its projected future earnings – indications are that SAA was sold using an undervalued valuation;
  • The viability of the Takatso Consortium as a potential equity partner, especially its ability to raise the required capital to meet the purchase agreements.

Gordhan cannot hide behind ‘changed circumstances’ as an excuse for canceling the SAA/Takatso deal.

He knew it was a bad deal from the beginning hence his insistence on hiding the details of the sale and purchase agreements from the public, including the nefarious attempts to muzzle Parliament through non-disclosure agreements.

In addition to holding him accountable over this dud SAA/Takatso deal, Gordhan must explain how SAA will sustain itself after the 18 month period, through which he says SAA will be able to cover its operating costs. The DA will fight against any attempt to raid the Treasury for another multi billion rand bailout, those freeloading days are over.

There is no strategic need for a state run airline that diverts limited state funding away from the desperate need to stimulate economic growth. SAA must be cut loose and be sold.