Public Enterprises Deputy Minister Obed Bapela did not rule out the possibility of SAA getting another strategic equity partner should it get into financial difficulties.
Public Enterprises Deputy Minister Obed Bapela did not rule out the possibility of SAA getting another strategic equity partner should it get into financial difficulties.
Responding to questions in the National Assembly, Bapela said in the trend where strategic equity partners have a stake in state-owned airlines, the state was a majority shareholder because their timing was perfect in terms of realising some troubles in the market and crowd in the private sector.
He said the state would retain 60% of the shares as had initially been the case with the failed SAA-Takatso deal.
“At the point of 12 to 18 months we will look at the market volatility and look at strategic equity partners that might be necessary. We are not ruling out that possibility, but the state will be a majority, not to privatise where we are a minority.
We want to assure South Africans on that one,” he said.
Bapela also said that should a strategic partner be sought again, there would be a transparent process.
“We have learnt lessons from the previous one so that everyone can see and do their analysis why we need this strategic equity partner. We will not wait until there is trouble.”
Bapela said privatisation was not the policy of the ANC and the sale of SAA shares to private people was because of conditions that existed while it was under business rescue.
When negotiations took place with Takatso Consortium, it was a matter of take it or leave it as Takatso was the only bidder.
But 60-40, that unfortunately, could not be achieved because the airline was in trouble, was grounded.”
Bapela also said the details of the deal were not kept secret but it was due to the negotiations. “Should you need those details – if you ask for them to be published because the deal is not there and the public wants it, it is something that can be looked at.”
The deputy minister said Public Enterprises Minister Pravin Gordhan had indicated when he announced the cancellation of the SAA-Takatso deal that there would be no need for a strategic equity partner for the next 12 to 18 months.
“SAA is doing well and will continue to do so. What happens beyond 18 months, an analysis of the market will have to be looked at and the seventh administration will look at the matter,” he said.
“For 18 months, at least, SAA will be running solo and will continue to do so but it does not mean they will not face trouble. Should they and an analysis indicate, we will then engage and the matter will be brought forth for further engagements.”
Bapela also said despite the termination of the deal, there was optimism regarding the future of the airline.
Earlier on Wednesday, some MPs in the public enterprises portfolio committee expressed their disapproval of the committee thanking Gordhan for his co-operation in its probe into the alleged irregularities in the SAA-Takatso deal.
This was after a draft report thanked him and former director general Kgathatso Tlhakudi when they probed the now-cancelled deal.
“Having considered the petition of the former director-general, Mr Kgathatso Tlhakudi, the committee wishes to thank the Minister of Public Enterprises for his co-operation, and Mr Tlhakudi for entrusting Parliament with the responsibility to investigate this matter,” read the draft report.
This portion of the report did not sit well with some MPs, who felt they did not receive joy from Gordhan.
EFF MP Nqobile Mhlongo expressed her shock that Gordhan was thanked for being co-operative.
“The minister was not really co-operative,” Mhlongo said, referring to when he was asked to come to scheduled meetings.
ANC MP Nkosinathi Dlamini said the report should be adopted with amendments. He said Gordhan had seemed not to respond to their investigation.
Committee chairperson Khaya Magaxa described interaction with Gordhan as poor co-operation that led to delays.
“At the end of the day, the minister did give the committee information. He has his own understanding of the process, which we continuously explained to him,” he said.
Magaxa said their draft report made references to refusals by the minister to their requests, among other things.
In its report, the committee said the SAA-Takatso deal should be referred to the Special Investigating Unit (SIU) for further investigation.
“The committee cannot say that the SAA-Takatso transaction was above board and will, in this regard, be recommending that law enforcement agencies must do their work in unravelling the truth about this transaction, particularly the alleged forgery of the former DG’s signature in the strategic equity
Cape Times
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