Gordhan defends SAA-Takatso deal, denies corruption claims
Public Enterprises Minister Pravin Gordhan says the decision to keep details of the ongoing sale of the South African Airways secret, is based on legal advice and not cover-up for corruption.
In 2021, Takatso Consortium was announced as the preferred equity partner to buy a 51% stake in SAA, while the government keep a 49% stake.
The troubled airline was placed under business rescue in 2019, which was finalised in April 2021.
Opposition parties, pundits and unions raised alarm after Gordhan wrote to the Parliamentary Committee seeking non-disclosure from members of the portfolio committee.
This meant that Gordhan’s reports on the progress of the equity deal between SAA and Takatso Consortium were kept secret.
Members of the media were barred from the parliamentary session where he was reporting on the SAA affairs.
Gordhan eventually spoke to the media in Cape Town on Wednesday.
He has since made public the letter sent to the chairperson of the portfolio committee, Khaya Magaxa, detailing reasons for non-disclosure of the contents of the sale.
"It is information relating to negotiation processes both in 2021 and currently, and disclosure of which may adversely affect those processes, to the detriment of government and the public interest," he said.
"Please note that negotiations on this transaction is continuing to take cognisance of current market conditions and revised valuations. There is no certainty as to the outcome of this process.
"However, in the absence of an agreed amended Sale of Shares Agreement, the conditions of the original Sale of Shares Agreement remain legally binding."
Gordhan said in a business environment the competitors cannot know everything as this may allow them an advantage when they compete against SAA.
"SAA's competitors do not want SAA to succeed. Certain documents contain commercially confidential information which would enable competitors to unfairly compete against SAA.
"The competitors are not obliged to disclose similar information that SAA is expected to disclose. Those parts of documents regarded as confidential also affect state privilege in so far as disclosure will prejudice the ability of the state to conduct the transaction in public interest.
"The value contained in the Sale of Shares Agreement can be used by minorities to determine the amounts to be paid. The Competition Tribunal approved the transaction with conditions which include that the minorities must divest. The information is commercially sensitive.
"The disclosure of this information may give rise to claims against Parliament and the department," he added.
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